Manufacturer and supplier of gaming products PlayAGS announced Monday its results for the second quarter of 2022. For the period ended June 30, the company posted consolidated revenue of $76.6 million, marking the sixth consecutive quarter in which quarterly sequential revenue growth was delivered in all segments, with an overall increase of 15% year-over-year.
AGS President and Chief Executive Officer David Lopez said: "Our second quarter results reflect the growing returns we are realizing as a result of the significant investments made into our R&D, sales, and product management teams over the past 24 months. These investments have accelerated the operating momentum we are seeing within the business, as reflected by the material year-over-year growth in our reported Q2 2022 net revenues, net income, and Adjusted EBITDA."
David Lopez, AGS President and Chief Executive Officer.
Consolidated revenue for the second quarter also exceeded the level reached in Q4 by approximately 5%, driven by a 40% increase in domestic electronic gaming machines (EGM) unit sales, the sustained strength within the domestic EGM recurring revenue business, a record table products performance, and further recovery in international EGM gaming operations revenue.
During the second quarter, domestic EGM revenue per day exceeded $32.55 for the fifth consecutive quarter, while the premium game footprint nearly doubled year-over-year, accounting for 12% at the end of Q2. Furthermore, domestic EGM unit sales increased by approximately 15%.
Other highlights of the quarter include table products revenue growing to $3.5 million, surpassing the prior record of $3.4 million, established in Q1 2022, by approximately 3%.
The business’ net income during the period was $1.5 million, compared to a net loss of $39 million in the prior year period, driven by improved operating performance and interest expense savings resulting from the successful completion of a comprehensive debt refinancing announced on February 15 this year.
Additionally, total Adjusted EBITDA was $34.1 million, compared to $32.1 million in Q2 2021; while total Adjusted EBITDA margin was 44.6%, consistent with the 45% achieved in Q1 2021.
"Despite swirling uncertainty over the health of the consumer and the direction of the global economy, we have been encouraged by the incredible consistency demonstrated within our business through July. Ultimately, our recurring-revenue focused business model and strong liquidity position fortify the underlying resiliency within our business," Lopez concluded.