PlayAGS Reports Record Revenue and Adjusted EBITDA in Q4 and Full Year 2023

PlayAGS, a technology firm specializing in gaming, has declared impressive financial outcomes for the final quarter and the entirety of 2023, showcasing double-digit revenue expansion across its business divisions and robust Adjusted EBITDA.

The enterprise achieved unprecedented revenue and operational efficiency for both Q4 and the fiscal year concluding on December 31, 2023. Overall revenue for the fourth quarter hit $94.2 million, a 15% surge year-on-year, signifying the eleventh consecutive quarter of substantial year-over-year growth.

PlayAGS witnessed substantial revenue increases across all three of its business segments, with its Electronic Gaming Machine (EGM), Table Products, and Interactive divisions experiencing revenue growth of 14%, exceeding 24%, and 30% correspondingly. Consolidated Adjusted EBITDA reached a record-breaking $42.8 million, marking the fifth consecutive quarter of significant growth.

“Our fourth-quarter outcomes were exceptional, with record-setting quarterly revenue and Adjusted EBITDA throughout all three of our business units,” stated David Lopez, President and Chief Executive Officer of AGS. “The caliber and steadiness of our recent financial performance demonstrate our skilled and committed team, increasingly comprehensive and varied product offerings across our business segments, and our enhanced execution and effectiveness.”

Throughout 2023, AGS generated $94.2 million in total revenue, a rise of 15.2% compared to the prior year. Operating revenue experienced a notable leap of 19.3%, reaching $160 million.

Although net income plummeted by a significant 97.4% to a mere $6.7 million, AGS witnessed its adjusted EBITDA surge by an impressive 14.7%, reaching $42.8 million. This accomplishment resulted in an unprecedented adjusted EBITDA margin surpassing 45%.

The final quarter of the year proved to be a triumph for AGS, with all divisions reporting revenue expansion, particularly noteworthy being the performance of equipment sales.

Their recurring revenue source, mainly derived from gaming operations, amounted to $59.6 million. Simultaneously, equipment sales took center stage, exceeding the previous year’s numbers by over 40% to achieve a landmark $34.6 million, driven by robust demand for both electronic gaming devices and table offerings.

Amplifying the positive momentum, AGS collaborated with Caesars Digital this month to introduce their well-received slot game, Rakin’ Bacon Odyssey, within the New Jersey market.