Gaming machine provider PlayAGS reported a reduced net loss for the third quarter of its 2021 financial year after it experienced a 36.5% year-on-year increase in revenue.
Total revenue for the three months to 30 September amounted to $67.3m (£50.0m/€58.3m), up from $49.3m in the corresponding period of 2020.
Gaming operations accounted for $53.2m of overall revenue in Q3, up 46.6% on last year, while equipment sales revenue also increased by 7.7% year-on-year, to $14.0m.
Breaking revenue down by type of game, electronic gaming machines (EGM) remained by far the primary source of revenue for the provider, with revenue here climbing 36.6% to $61.6m. Within the EGM segment, EGM gaming operations revenue was 48.2% higher at $47.7m while EGM equipment sales revenue edged up 7.8% to $13.9m.
Table product revenue amounted to $3.1m, up by 37.2% year-on-year and a new quarterly record for the provider. Within this area of the business, gaming operations revenue was up 36.1% to $3.0m and equipment sales revenue 64.1% to $151,000.
Turning to interactive, revenue increased by 32.6% to $2.6m, with real-money gaming revenue rising 81.2% to $2.0m, though the provider saw social gaming revenue decline 32.7% to $558,000.
“Our third-quarter financial performance once again reflects our growing product momentum and improved execution across all three of our operating segments,” PlayAGS president and chief executive David Lopez said.
“The investments we have made into our business over the past 18 months have strengthened our company’s foundation, which should pave the way for meaningful shareholder value creation in the coming quarters.”
In terms of costs for the quarter, operating expenses amounted to $60.3m, up 16.6% from last year, while PlayAGS also noted $10.7m in interest expense and $1.1m in other costs.
As such, pre-tax loss amounted to $4.6m, though this was a significant improvement on the $12.8m loss reported at the end of Q3 last year. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) also increased 18.1% year-on-year to $31.9m.
PlayAGS also received $2.7m in tax benefits, but after also accounting for a $1.6m foreign currency translation adjustment, this left a net loss of $3.4m. This was a reduction compared to a $9.7m loss incurred last year.
“Supported by our solid third-quarter financial results and the stability we are in seeing within our business’ fourth quarter to date, we now expect to be nicely free-cash-flow positive for the full year 2021,” PlayAGS chief financial officer Kimo Akiona said.
“Looking ahead, we continue to carefully manage our leverage and liquidity position to ensure we can execute on opportunities to lower our borrowing costs as they present themselves, with an intermediate-term focus on restoring the balance sheet flexibility we had prior to the onset of Covid-19.”
