Speaking to CasinoBeats, Ebling explained that incremental products are defined as niche features designed to gain a small segment of the market. For example, when the video streaming service Netflix launched anime on its platform.

Ebling said: “Netflix launched anime and it attracted a unique type of visitor. Because they were one of the few, it grew a really healthy base, [especially] in Asian markets. That led to Netflix producing their own anime content and growing the segment and attracting new users.

“When we look at markets like the UK that are very mature and have been well established and are loaded with content and options, we need to think about how we leverage incremental products to make that 1% gain quarter-over-quarter and year-over-year.”

Ebling also pointed to the more casual player as an example of a market that could be targeted by incremental products.

She said: “Look at crash games and tap games, for example. These are products that have come out in recent years to engage the segment of players that don’t want to spend two hours on their phones. Maybe it is someone who wants to put £20 in on their way on the tube and wants to have a bit of a faster experience or wants to have a different type of experience. 

“They don’t necessarily want to watch reel spins. They want to have a different type of feeling about gambling with watching the plane and trying to bet and have it be more engaging and tying in with some of these other social aspects that we see that are prevalent in everyday life.”

Ebling added that although she believes that increasing regulations is important to protect players, the engagement and entertainment aspect of play “suffers”. As a result, incremental products can be used to “allow players to enjoy the experience that they have and not feel like they are losing that piece of entertainment”. 

Many mature markets are located in Europe, and Ebling also spoke about the stagnation of ideas in the region. 

She stated that most operators in the sector are “very happy to take the game that’s been skinned multiple times and throw it on the homepage”, rather than being creative.

“Igaming’s been around for 30 years but that doesn’t mean that we have to keep the homepage the same,” she explained. “There’s this assumption that if I don’t put this game on the homepage that my site’s going to crash and no one’s going to play.

“Actually what we see is that people really like things that are different. You should have a wide funnel of different products with a really strict way to analyse and look at data to understand what’s working.

“Nowadays, we have AI so you can change the homepage so it’s personalised to the player and you can leverage some of these tools to build a really comprehensive product offering so that a player wants to come to your site and only your site. They don’t need to play across multiple sites because they’re able to find what they want and find something new.”

To hear more about how incremental products can unlock the next 1%, as well as the success of the recent release of AGS’ mechanical stepper in North America, click HERE to watch the full video.

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Holding 1.5 per cent of AGS’ outstanding stock, the investment management firm published a letter claiming that the acquisition move announced last week offers “effectively zero, or negative premium” for shareholders. 

EIM’s statement read: “We feel compelled to share with you our concerns about AGS’s recently announced take-private transaction with Brightstar Capital Partners. We do not believe the take-private transaction is in the best interest of stockholders, and we intend to vote against the transaction.”

Set to be completed in 2025 upon being accepted by AGS’ shareholders, the acquisition priced AGS at $12.50 per share in cash, representing a 41 per cent premium to the supplier’s volume-weighted average share price over the last 90 days. David Lopez, CEO & President, suggested the deal “provides stockholders with compelling, certain cash value”.

However, EIM suggested that the figure has potential to be higher due to AGS’ first quarter results that were revealed after the Brightstar announcement. 

According to the investment firm, AGS’ Q1 performance reinforced its “optimistic view of AGS’ prospects” as organic adjusted EBITDA grew by 21 per cent and the supplier’s interactive segment’s adjusted EBITDA increased almost nine-fold from Q1 2023. 

Stated within the letter, EIM suggested that had the financial results been published ahead of the acquisition announcement, shareholders might’ve been able to gain a higher premium on their shares. 

The letter read: “If market participants had been given the opportunity to digest first quarter results absent Brightstar’s bid, we believe AGS shares would be trading well above the current market price of $11.40. It is clear to any reasonable market participant that a $12.50 take-private bid for AGS would be practicable only if announced before AGS could trade freely after the release of first quarter results.

“In other words, the only way for this take-private bid to have been remotely palatable to stockholders was if stockholders did not fully appreciate the impact of the first quarter results.”

EIM’s letter also explained that the acquisition deal’s stated enterprise value of approximately $1.1bn differs from the actual fully diluted enterprise value calculable from Brightstar’s $12.50 per share bid, which comes out to $1.06bn. 

If the Brightstar bid’s enterprise value were to represent $1.1bn in full, a share price of $13.4 would be required. 

The letter also noted that two of AGE’ main competitors in the land-based gaming sector, IGT and Everi, are set to merge.

EIM suggested this could present a “significant upside” for AGS shareholders with an opportunity for increased market share, something touted by AGS in its March Investor Presentation. 

Additionally, the firm pointed out that the merger is set for completion in 2025, meaning that shareholders are expected to forward sell their shares for “a multiple of well below x4.8 NTM adjusted EBITDA, assuming only modest organic growth”. 

Ultimately, the letter stated: “We do not understand why any shareholder would be excited to sell an excellent, growing business at this relatively low multiple and a flat share price relative to 2019.

“We believe AGS would have a bright future as a standalone public company, with at least $225m in 2026 adjusted EBITDA clearly achievable. Even on a multiple of x7 adjusted EBITDA – a significant discount to slower-growing peer Light and Wonder’s x9 NTM multiple – AGS shares would trade at $24.70, nearly 100 per cent higher than Brightstar’s bid.

“We do not oppose a take-private offer per se, but Brightstar’s offer fails to reward stockholders for the strong performance AGS has already demonstrated and fails to account for the company’s significant potential.”

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Upon approving the acquisition from Brightstar, an industry-focused private equity firm, AGS’ shareholders will receive $12.50 per share in cash, representing a 41 per cent premium to the supplier’s volume-weighted average share price over the last 90 days. 

The figure also represents a 40 per cent premium to AGS’ closing price on May 8, 2024. 

David Lopez, CEO & President of AGS, commented: “We are very pleased to reach this agreement, which we believe provides our stockholders with compelling, certain cash value. Joining forces with Brightstar represents an exciting new chapter for AGS and our mission to provide exceptional gaming solutions for our operator partners.

“With Brightstar’s resources and strategic guidance, we believe AGS will be well-positioned to make targeted investments in R&D, top talent, operations and industry-leading innovation, which should accelerate our global footprint.”

While the acquisition has been approved by the AGS Board of Directors, they did recommend that the company’s stakeholders approve the acquisition before its completion.  

If the acquisition gains full approval, Brightstar will gain full control of AGS gaming operations, supplying land based slot and table game products as well as online casino content.

“We look forward to working with David and the AGS team to capitalise on opportunities by taking a long-term approach to creating value,” said Andrew Weinberg, Founder & CEO of Brightstar. 

“AGS has a strong pipeline of new products, and we believe the company’s innovative approach to game development provides significant potential for continued growth.”

Macquarie Capital will serve as financial advisor for AGS, while Cooley LLP will serve as the supplier’s legal counsel throughout the acquisition. 

For Brightstar, Jefferies LLC will serve as lead financial advisor with Barclays and Citizens JMP Securities as supporting financial advisors. Kirkland & Ellis LLP will handle the buyer’s legal counsel. 

Due to the acquisition announcement, AGS has cancelled its Q1 2024 conference call, which was set to take place on May 9, and has confirmed that it will not issue a quarterly earnings release. 

Roger Bulloch, Partner at Brightstar, added: “We have been impressed by AGS’ award-winning products, differentiated culture, and outstanding reputation in this expanding industry. 

“We trust that partnering with AGS and executing on our shared vision can accelerate the company’s ability to create even greater value for its customers and players around the world.”

Subject to customary closing conditions, the transaction is expected to close in the second half of 2025 with AGS to become a privately held company. 

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Increasing the synergy between the two experiences should be a key focus for operators intending to expand their audience according to the omnichannel effectiveness panel at the Summit. 

Nick Patrick, Co-Founder and CEO at Radar underlined the importance of digital gaming being able to raise the ceiling of engagement for the land based player. 

Integral to this is personalisation and geolocation Patrick believes, stating it is a significantly ‘underutilised tool in terms of combining the retail and digital sectors’. 

It can also provide support for evolving player expectations, with seamlessness a minimum standard for the modern player. 

Oliver Bartlett, Vice President of Gaming – Product & Content at BetMGM expressed that the digital industry at times is ‘guilty of not taking land-based players on the journey with us’. He pinpointed bonuses and promotions as being key assets that need to transcend both retail and digital casinos. 

‘There’s a significant opportunity for the European market to learn from the land based experience of the North American market’ stated Bartlett, as he warned that simply taking tried and tested methods from the European market is the incorrect approach.

When it comes to specific tools that he feels could be pivotal to bolstering cross platform player engagement, he drew attention to the potential of omnichannel jackpots and table game jackpots. 

Furthermore, there could be room for some of the non-traditional games that have taken off in digital space to transition to land based locations as finding synergy between the two experiences increases in importance. 

Declining footfall in Atlantic City has widely been blamed on the growth of igaming, however, this is something that Zoe Ebling, VP of Interactive at AGS, was quick to dispel.

Bridging the gap between the two spaces, Ebling also cited education as a key instrument – ensuring that players hold knowledge of when games are launching and what their USPs are, crucially also how the digital and land based versions of the game complement each other. 

She warned that until we shift attitudes towards understanding that online and digital can align in their approach the industry is missing key opportunities. 

One of the areas that this is prominent is in the promotion of licensing. Stacey Rowland, SVP and General Counsel at Genting Americas, underlined the vital nature of the role of brick and mortar casinos when it comes to licences. 

She also provided a tentative but optimistic outlook into what the future holds for New York legislation, which was echoed by Bobby Soper, CEO at Sun Gaming & Hospitality, who revealed his belief that the next five years could see a big run for igaming legislation in North America.

As market dynamics continue to evolve, Soper also pinpointed ilottery as being a key catalyst for operators, as the whole ecosystem is driven by new tastes in preferences. 

Catering to the evolving tastes Jason McCulloch, Vice President of iGaming at Galaxy Gaming emphasised that branded studios are now essential for operators if they want to truly tap into what players desire. 

When it comes to table games he highlighted that operators need to attempt to transcend the live experience from a brick and mortar casino to the online space, truly making it an event for the player. He also urged caution from all elements of igaming to avoid working in silos and bolster collaboration across the board. 

Discussions around the relationship between the brick and mortar sector and the digital space were escalated as the next panel explored ‘whether igaming has cannibalised the brick and mortar sector’, or whether it’s merely healthy competition amidst its evolution.

Given the brick and mortar experience is steeped in heritage and history in North America, it is a debate that is sure to be prevalent for discussions around future frameworks, with stakeholders eyeing a space that allows brick and mortar casinos to thrive.

Catie Di Stefano, Director of Community Marketing at onlinegamblers.com revealed that cannibalisation isn’t a subject that should be feared, stating that operators should focus on trying to cross promote. 

She underlined that the communication needs to heighten from land based casinos in order to boost the omni channel experience for players. 

Placing a closer analysis of the demographics, Erik Nyman, President – Americas at EveryMatrix stated that in order to maximise engagement it’s ‘crucial that players are addressed in the right way as clearly there is a younger demographic that plays online – some of them have never even ventured into a casino’.

Nyman also warned that regulatory frameworks simply need to move faster in order to keep up, looking specifically at the impact of sweepstake casinos, which are an indictment of how rapidly the market is growing. 

Melissa Blau, CEO iGaming Capital compared the surge of sweepstake casinos to the previous elevation of DFS, underlining her belief that there is significant hesitancy from land based casinos to put their name to sweepstakes given ‘a fear of the unknown’.

Nonetheless, ‘the growth of igaming isn’t about cannibalisation but is instead around increasing competition’ according to Quincy Raven, VP, North America at NeoGames/Aristocrat. 

Raven suggested that land based operators elevate the way they utilise the igaming space to unlock new avenues to engage with their audience as they are provided with a deeper opportunity to cross promote and enrich the customer viewpoint. 

Tim Cogswell, Senior Director iGaming at betPARX underlined the starkly different experiences that are encompassed between the two igaming journeys. Anticipating that 2025 will be a key year for the growth of igaming legislation, he emphasised the essential need for alignment in terms of strategy. 

Fuelling this collaboration can be the forming of a virtuous loop between the two journeys, a challenge that can only be achieved amidst increased communication and togetherness between the two sectors. 

Blau also warned against allowing different departments to get ‘territorial’ – cementing the need for all sectors to be working together towards a common goal. 

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As a result, it will see the installation of 12 of AGS’ progressive systems Bonus Spin Xtreme, which links all table games on the floor to form a single progressive jackpot. 

Rick Ray, Three Rivers Casino Director of Gaming, commented: “For years, manufacturers have poured significant innovation into their slot products. It’s commendable to see AGS elevate table games to a new level with Bonus Spin Xtreme. Our guests have already embraced the game with jackpots totaling over $125,000 in the first month.”

The move is set to significantly elevate the overall user experience at the casino, with it continuing to increase its focus on innovation. 

“Our partnership with Three Rivers is a testament to how we continue to innovate and broaden our product catalogue, enhance the technology in our table game product portfolio, and achieve the right amount of depth to be able to fully outfit the table games floor,” added John Hemberger, AGS Senior Vice President and General Manager, Tables. 

“As a company, we feel more energised than ever to continue to push the envelope with what’s possible in the table space and help casino operators deliver a superior experience to their players.”

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It is predicted that a “more diverse product portfolio” combined with “our passionate team” is expected to position AGS “to deliver on this theme of relative outperformance for many quarters to come”.

A record setting quarter

Total revenue through the quarter swelled 14 per cent to a record $89.4m (2022: $78.3m), with all core operating segments, those being interactive, electronic gaming machines and table products, up 20 per cent, 14 per cent and nine per cent, respectively.

Despite this, net loss swung to $156,000 versus income of $476,000 one year earlier, which is aligned to an increase in debt service costs and the inclusion of a favourable tax item in the prior year period, which were partially offset by year-on-year growth in income from operations.

Total adjusted EBITDA rose 16 per cent YoY to a highest ever $40.1m (2022: $34.4m), driven by interactive and EGM growth of 57 per cent and 17 per cent, respectively.

For the year-to-date, revenue reached $262.3m (2022: $203.1), with net loss swinging to $361,000 from income of $10.5m.

“We delivered another solid quarter of execution in Q3 with our product momentum and focused team producing performance that far exceeded the trends observed across the broader domestic gaming landscape and contributed to several new financial records along the way,” Lopez noted.

This was aligned to “a few notable accomplishments”, with the first of these being domestic EGM operations “once again outpacing the revenue trends observed across the broader domestic gaming landscape”.

In addition, global EGM unit sales, ongoing optimisation efforts and a stable macroeconomic backdrop and an increased online performance were each also cited.

AGS’ Interactive ambitions

As the interactive segment “entered launch mode”, a record performance saw revenue reach $3.1m, up 20.2 per cent to $2.6m, with AEBITDA increasing by almost 60 per cent YoY to $903,000 (2022: $575,000).

RMG revenue increased 26 per cent YoY and 20 per cent sequentially to occupy 90 per cent of the division’s entire make-up, with North American-facing customers accounting for over 90 per cent of Q3’s RMG revenue mix.

This was put down to new game launches, including the company’s first ever three-reel game theme, which is said to have become the group’s “most successful new game released today” that has “outperformed our previous best release by nearly 40 per cent”.

In addition, more tactical and targeted business development activities with B2C operator partners, platform enhancements, and a successful launch into West Virginia also helped interactive deliver its best performance.

“The strong performance propelled the title to the top of the charts in the October Eilers report with another AGS game theme capital gains taking second place,” Lopez noted.

“As I look to 2024 and beyond, I’m confident the strategic ambitions for our interactive team should allow for more consistent delivery of AGS content and the online channel. 

“Further diversification of our online content offerings into additional genres and more strategic and impactful interactions with our B2C partners, all of which will position us to deliver outsized growth.”

EGM and table products

AGS’ most dominant segment remains that of EGMs, with revenue up 14.3 percentage points to $81.86m (2022: $71.62m) through the July to September time frame. AEBITDA closed at $36.7m, up 17.4 per cent from 2022’s $31.3m.

Revenue from domestic operations reached $48.6m, up six per cent YoY, while on an international basis a 25 per cent increase to $5.4m (2022: $4.3m) was recorded. Equipment sales closed at $27.8m, a 30.2 per cent rise from $21.3m.

Total table products revenue increased nine per cent to $4.3m (2022: $4m), while AEBITDA dropped five per cent to $2.4m that is said to “reflect a higher allocation of field service expense to the segment to better align with the current complexion of the installed base and a greater mix of equipment sales revenue”.

Executive’s closing statements

Lopez added: “While I’m encouraged by the recent success and consistent momentum building across all three of our operating segments, I’m even more enthused with how our improved operating performance has allowed us to deliver on two key strategic objectives, consistent free cash flow generation and delivery.”

Kimo Akiona, AGS Chief Financial Officer, commented: “Looking ahead to Q4, although we expect interactive revenues to be nicely, higher versus the prior year. 

“We believe that combination of a challenging Q3 comparison with the quarter benefiting from our most successful R&D launch, game launch to date, and the anticipated timing of new content introduction could temporarily moderate the level of sequential revenue growth we were able to achieve. 

“That said as David indicated, we’re increasingly confident to added depth and diversity of our under-development online content offering along with our execution of more targeted and tactical business development initiatives put our interactive business on a multi-year path to consistent and sustainable outsized growth in 2024 and beyond.”

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Coming hot on the heels of the industry’s annual descent on the entertainment capital of the world, the impact of previously unranked games, in particular within the new game rankings, is once again felt despite dropping from 12 to seven.

Our attention is first occupied by the overall top games by gross gaming revenue, where International Game Technology retains its place at the summit as the Blackjack table secures a percentage of 3.7.

Sister title Cash Eruption lead frogs one place month-on-month to become the leading slot title with overall GGR of 2.15 per cent, as Digital Gaming Corporation’s Gold Blitz drops from silver to bronze with 1.46 per cent.

Of the top 25 titles that are dominating the GGR charts, online slots maintain the lion’s share with 17 games. Live casino, all courtesy of Evolution, has five entrants, while table games comprise the remaining three. Video poker remains out of the top 25.

Continuing with the overall rankings, Evolution’s Live Dealer Speed Baccarat drops to second place after storming to the summit at its first attempt, with the aforementioned Blackjack offering surging from third to make it a double triumph.

However, rounding off the top three is AGS’ Mega Diamond, which will become a prominent feature throughout the latest monthly breakdown. In its first feature, the slot title edged out Capital Gains, also an AGS game, as well as DGC’s Fire and Roses Joker and Gold Blitz. The latter falling from second to sixth.

In the slots breakdown, Mega Diamond sits ahead of Capital Gains, as Fire and Roses Joker and Gold Blitz once again trail. Light & Wonder’s 88 Fortunes, a consistent top performer, round off the top five.

A total of seven unique suppliers are represented in the top 10, which is once again hailed as “showing continued variety in the segment”. These are Light & Wonder, DGC, AGS, Evolution, IGT, ReelPlay and Greentube. The top 25 also features the likes of Everi, Anaxi and Inspired.

In the new game rankings, the aforementioned Mega Diamond leads the way, with last month’s one and two, namely Fire and Roses Joker and L&W’s Rich Little Piggies Meal Ticket, down one place each.

A total of seven new releases make the top 25, with the leader joined by DGC’s Trojan Kingdom (6th), Anaxi’s Buffalo (9th), White Hat Studios’ Fire Coins (13th) and Wolf Legends Megaways Jackpot Royale (14th), Fantasma Games’ Payday Express (23rd) and Evolution’s Blobsters Clusterbuster (24th).

The new overall ranks are identical to the new slot ranks for another consecutive month, with each of the top 25 representing titles that fall in the bracket of the latter list. 

Previously, the potential of the chasing pack has been touched upon in detail by Rick Eckert, Managing Director of Slot Performance and Analytics at Eilers & Krejcik Gaming, with Anaxi, Aristocrat’s real-money gaming division, one citing as causing much optimism. 

Following the latest breakdown, he commented: “The increased presence of igaming suppliers and omni-channel content is more evident every passing year and noted below from our coverage.  

“Mega Diamond from AGS enters the OGPD ranking number one in the new slot ranks. This theme has been tracked in our retail database since July ’22 and was ranked 25th last month in the core video reel high denom segment where it is currently performing best at the $1 base denomination.  

“Anaxi/Aristocrat much anticipated release of Buffalo makes its debut in the OGPD ranking number nine in the new slot ranks. This title is the top grossing game in retail but indexing lags other popular titles from the supplier we are expecting to populate online. 

“Blueberi’s Devils Lock powered by Bragg Gaming Group moves up the ranks again this month now at number sixteen in the new slot ranks. This game features perceived persistence and cash on reels that are overly prominent in retail but still trending up online. 

“Later this month, we will take a deeper dive into online game attributes through our quarterly data insights report.”

Looking specifically at the supplier mix, Evolution unsurprisingly continues to lead the way, although another decline in share, as touched upon earlier, was evidenced. 

Through September the group occupied 21.2 per cent (September: 2s.4 per cent) of GGR, with 85.7 per cent (September: 83.5 per cent) of its gaming suite represented as online slots.

IGT was next in line, however a slight recovery to 17.4 per cent (September: 16.7 per cent) halted a significant slide felt one month earlier. 85.9 per cent (September: 85.2 per cent) of its portfolio were tracked as slots.

L&W remained third, although the group’s percentage of GGR also rose slightly to 15.8 per cent, up from 15.1 per cent month-on-month. 90.1 per cent (September: 87.9 per cent) of the group’s gaming suite are slots.

Slots remained the dominant segment when looking at the total games tracked with a total percentage of 91.2 (September: 90.1 per cent), ahead of table games’ falling 3.8 per cent (September: 4.9 per cent).

Live casino was next in line with 1.9 per cent, ahead of instant win’s 1.6 per cent, video poker’s 1.1 per cent and the 0.2 per cent shared by lottery and bingo/keno. Each remained consistent month-on-month.

Mobile retains its frontrunning status with the highest percentage of theo win generated at 69.9 per cent (September: 70.8 per cent) and leads across most segments, with desktop, via a theo win of 29 per cent (September: 28.5 per cent), soaring ahead in video poker, virtual sports and lottery. Tablet continues to bring up the rear with 1.2 per cent (September: 0.8 per cent).

This latest analysis examined data from Michigan, West Virginia, Pennsylvania, New Jersey and Connecticut across 32 online casino sites, tracking 50,885 games to represent around 64 per cent of the market.

If interested in learning more, subscribing, or participating in the Eilers-Fantini Online Game Performance Database reach out to Rick Eckert at reckert@ekgamingllc.com.

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AGS

Robert Blair has been confirmed as Deputy General Counsel at gaming products and services provider AGS, joining the company on an immediate basis. 

He arrives at the group from Aruze Gaming, where he occupied the positions of Global General Counsel, Global Deputy General Counsel, and Global Senior IP Counsel across a near six year period.

Prior experience comes as Counsel and US Patent Attorney for EIP, in addition to Associate General Counsel of Intellectual Property at International Game Technology for over seven years.

“Bob is an exceptional legal mind who is a valuable addition to the AGS leadership team,” said Rob Ziems, AGS Chief Legal Officer and Secretary. 

“With his extensive knowledge and experience on corporate legal affairs and patent matters, Bob will be a key player in protecting and advancing our business and our brand as AGS continues to capitalize on many growth opportunities ahead.”

Alcohol and Gaming Commission of Ontario

The Alcohol and Gaming Commission of Ontario has named Dr. Karin Schnarr as the successor to Tom Mungham ahead of the CEO & Registrar’s impending exit.

Mungham joined the Crown agency in 2006 as Director of Licensing and Registration before later becoming CEO & Registrar, but he will soon relinquish those duties as a result of his retirement which was announced in March.

The AGCO subsequently confirmed it had enlisted an executive search firm to support its search for Mungham’s replacement, and it has taken the best part of six months to publicly name one.

This becomes the latest key personnel change rolled-out by the AGCO after Dave Forestell was named as Chair of its board of directors, replacing Lalit Aggarwal.

Novomatic

Novomatic has debuted a fresh management structure for the group’s Dutch division, with Karin den Dunnen set to replace Jos van den Borne as Chief Financial Officer. The latter signalled an intention to depart to pursue new challenges.

The fresh appointee boasts experience as VP Finance and Control at Holland Casino, as well as similar such positions at a range of companies spanning numerous industries.

She will be charged with playing a “key role” in driving the group forward in “an emerging and important core market”, where she will be responsible for the finance team, human resources, corporate IT and compliance, legal as well as internal audit.

Peter Eder, Novomatic Netherlands Supervisory Board Member, noted: “Novomatic is known for first class technology products and leading innovation. 

“With Karin den Dunnen we have gained a first class financial expert with years of experience in the gaming industry. I am sure that by having Karin den Dunnen on board our company will be able to successfully further expand its position and we wish her a successful start at Novomatic.“

Quick Custom Intelligence

Brandon Lenssen, hailed as a “twenty-seven-year stalwart of the casino industry”, has joined Quick Custom Intelligence as Vice President & General Manager.

Across an almost three decade career, Lenssen has occupied roles such as Operator, Operational Intelligence Partner and Regulator within the casino gaming sector in the USA and Canada. 

Most recently as her served as the Vice President & General Manager for the three Bally’s Corporation casinos that are located in Black Hawk, Colorado.

“We are honoured to have Brandon join the QCI family. His unparalleled experience and insights will undoubtedly amplify our capabilities and the value we deliver to our partners,” commented Andrew Cardno, CTO of QCI.

“With Brandon Lenssen joining our ranks, we’re not just adding a member to our team; we’re integrating a wealth of experience, knowledge, and innovative thinking. We’re embracing a vision that believes in the power of data, the potential of technology, and the promise of the future. 

“Together, as we chart new territories and create transformative experiences, we’re more equipped than ever. The casino industry is on the brink of evolution, and with strategic leaders like Brandon steering the ship, QCI is poised to lead the way.”

IMG

Sally Brown and Steve Rudge have been appointed as Vice Presidents and Co-Heads of Multisport Content for IMG’s production business.

In the newly created positions, the pair will oversee the company’s production relationships with the likes of UFC, EuroLeague, Super League Rugby, World’s Strongest Man, World Championship Snooker and Grand Slam Tennis.

Furthermore, the pair will also be responsible for driving business development and new commercial opportunities leveraging other key strategic areas within IMG across digital, sales, data and technology.

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Reporting its Q2 financials, AGS declared a 17 per cent increase in revenue year-over-year to $89.8m (Q2 2022: $76.6m) as electronic gaming machines, table products and interactive all grew in comparison to the previous year.

The gaming company’s Q2 revenue figure was also an improvement over the previous record, set earlier this year in Q1 of $83.2m, as well as the company’s tenth consecutive quarter of sequential growth.

Per segment, both EGM and table products achieved new quarterly records in terms of revenue.

EGM revenue stood at $82.7m by the end of the quarter, up 17.3 per cent YoY (2022: $70.5m), table products improved by 25.1 per cent to $4.4m (2022: $3.5m) and interactive rose by 5.8 per cent to $2.8m (2022: $2.6m).

Of note, global EGM sales improved by 35 per cent YoY to top 1,250 units, as well as seven per cent ahead of Q2 2019. Also, domestic EGM recurring revenue achieved an all-time quarterly record for the third consecutive time, growing by seven per cent YoY.

Commenting on the results, President and CEO, David Lopez, said: “Our record-setting second quarter financial performance clearly demonstrates the strength of our products, team members, and strategy, which is creating significant momentum within all three segments of our business.

“The unique combination of a growing portfolio of high-performing products and an exceptionally talented team has me excited about what lies ahead for our company in 2023 and beyond.” 

While income from operations rose by 53.6 per cent to $15.1m (2022: $9.8m), net income declined for the company by 44.8 per cent to $851,000 (2022: $1.5m).

AGS attributed the drop in net income to “the recent move higher in market-level interest rates increased the company’s interest expense by approximately $6m relative to the level incurred in the prior year period”.

The company also added that income from operations improvements were offset by “a significant portion of the prevailing interest rate environment’s impact on the company’s reported net income”.

Meanwhile adjusted EBITDA improved by 16 per cent to $39.6m (2022: $34.1m).

EGM and table products both saw increases in adjusted EBITDA, rising by 16.8 per cent and 12 per cent to $36.9m (2022: $31.6m) and $2.3m (2022: $2m) respectively. However, interactive dropped by 13.2 per cent YoY to $473,000 (2022: $545,000).

Cash from operations came in at $25m, while free cash flow reached $12.6m, a 38 per cent improvement YoY.

CFO Kimo Akiona added: “During the second quarter we delivered on our commitment to further de-lever our balance sheet through a combination of adjusted EBITDA growth and free cash flow generation. 

“Supported by our record-setting financial performance through the first six months of the year, the sustained operating momentum we continue to observe across all three business segments, and our confidence in our ability to leverage our capital deployment discipline and improving working capital efficiency to consistently generate free cash flow, we now expect to exit 2023 with net leverage in the range of 3.25 times to 3.50 times.”

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Revenue through the October to December quarter rose 16.4 per cent to reach $81.73m (2021: $70.22m), with that figure also representing a four per cent over the $78.3m delivered during the prior quarter. This represents an eight consecutive quarter of sequential total revenue growth.

The company’s electronic gaming machines division continue to account for the bulk of that figure, with the segment witnessing a 16.8 per cent increase from $64.49m (2021: $75.33m).

Regarding this performance, the company said: “The continuous improvement in our EGM unit sales performance reflects successful execution of our coordinated strategy to broaden our global customer account penetration; accelerating returns on recent R&D investments intended to strengthen the breadth and diversity of our EGM game content and gaming cabinet portfolios; continued recovery in North American replacement unit demand; and complementary EGM sales into international markets.”

Table products recorded a 22 per cent uptick to $3.89m (2021: $3.18m), which AGS noted is a reflection of growing demand and further adoption of a range of its products.

Furthermore, on an interactive basis a slight 1.1 per cent drop to $2.5m (2021: $2.53m), with a seven per cent increase in real-money gaming revenue being offset by “an anticipated decline” in the group’s social casino output.

AGS added that the company is currently aiming to continue to “strategically refocus its technical and commercial interactive resources to optimise long-term profitable RMG revenue growth”.

Kimo Akiona, AGS Chief Financial Officer added, “We exited 2022 with net leverage inside of 4.0x, consistent with the expectations articulated at the start of the year. 

“As we move forward into 2023, our organization remains squarely focused on maximising free cash flow and further reducing the amount of leverage on our balance sheet.”

In addition, AGS also posted “record” net income of $2.5m contrasted to a loss of $9.1m that was felt one year earlier, which is aligned to continued organisational focus on operating expense efficiency. This was offset by slightly higher interest expense resulting from the recent move higher in market-level interest rates.

Adjusted EBITDA increased 16 per cent to $37.3m (2021: $32.3m) driven by gains across the EGM and table games segments, which was partially drawn back by interactive struggles.

David Lopez, AGS President and Chief Executive Officer, stated: “Our record-setting fourth quarter results reflect the accelerating returns we continue to realise on investments made into our R&D, sales and product management teams over the past several years. 

“Looking ahead to 2023, I see a set of company-specific growth catalysts forming within all three segments of our business that should allow our recent operating momentum to continue.”

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