In the third quarter, PlayAGS, an electronic gaming products supplier, experienced a net loss of $1.5 million, despite a 14.2% increase in revenue. The company reported $89.4 million in revenue during this period, attributing it to growth in gaming operations and equipment sales.
Higher operating expenses and interest costs contributed to the overall loss, with the absence of tax benefits also impacting the company. Despite this, PlayAGS President and CEO, David Lopez, expressed optimism about the quarter, highlighting the growth within the company’s interactive business as a standout highlight for Q3.
Lopez emphasized the expanding interactive segment and overall growth within the company, which positions PlayAGS for further success in the fourth quarter and beyond. During an earnings call, Lopez also noted that the company delivered a solid quarter of execution in Q3, achieving several new financial records.
Looking specifically at the third quarter, gaming operations generated $61.0 million in revenue, representing a 7.6% increase from the previous year. Electronic gambling machines (EGM) remained the primary source of revenue for PlayAGS, generating $81.9 million in revenue, a 14.3% increase from the previous year.
The interactive segment also saw significant growth, with revenue increasing by 20.2% to reach a record $3.1 million. PlayAGS attributed this growth to new game launches and strategic business development activities with B2C operator partners.
However, despite the revenue growth, PlayAGS experienced higher operating expenses, totaling $74.9 million for the quarter. The company also reported increased interest expenses and income tax payments, ultimately resulting in a net loss of $1.5 million for the third quarter.
Looking at the year-to-date financials, PlayAGS reported a rise in revenue to $262.4 million, with gaming operations revenue reaching $180.6 million and equipment sales revenue at $81.7 million. The company ended the nine-month period with a net profit of $5.1 million, compared to a loss in the previous year.
In conclusion, despite the net loss in the third quarter, PlayAGS remains optimistic about the future, with a focus on strategic ambitions for the interactive segment and plans for further diversification of its online content offerings.