American Gaming Systems (AGS) has reported that recent investments in key teams have greatly contributed to the company’s rising revenues. The company closed the second quarter of 2022 with 14.6% higher revenues.
A Positive Net Income for the First Time in 10 Quarters
The gaming experiences provider earned $76.6 million for the period. This number represents a 14.6% increase compared to the $66.8 million the company earned last year. The earnings for the quarter also marked a 5% quarter-on-quarter increase from Q1’s $72.9 million.
AGS attributed much of its growth to its EGM segment which experienced a growth of 15.2%. The company is also happy with the performance of its table games. Because of the good performance of the aforementioned verticals, AGS was able to counterbalance a slight decline in its interactive segment. The latter continues to fluctuate and experience rises and declines. Lastly, the real money and social gaming verticals also experienced declines of 6.5% and 11.2% to $2 million and $525 million respectively.
In addition, ASG’s adjusted EBITDA experienced a 6% increase to $34.1 million. This is also a 4% quarter-on-quarter increase, considering the $32.75 million the company saw between January and March.
Most importantly, ASG was finally able to generate a positive net income. This is, notably, the first time since Q4 2019 that has seen the company earn a positive net income. Those numbers demonstrate that AGS’ business is going well despite the hurdles caused by the global turbulence. It also shows that the company is able to deal with the challenges and continue working towards its goals.
Lopez Is Delighted by the Results
David Lopez, president and chief executive officer of ASG, commented on the Q2 results. He confirmed that these results were possible thanks to the significant investments made into the company’s R&D, sales and product management teams over the last two years. According to Lopez, this helped the teams speed up their work, which helped the company accelerate its operating momentum.
Lopez also mentioned that the key North American market has helped his company with the recovery. In addition, the improvements in Mexico have also benefitted ASG.
Lopez noted that ASG’s business is increasingly consistent despite the “swirling uncertainty” and the direction of the global economy. He added that those results are encouraging and inspire his team to do more.
ASG’s CEO concluded that his company’s recurring-revenue strategy and strong liquidity position cement the company as a resilient brand.