The AGEM Index decreased in August 2018. The composite index finished the month at 565.39 points, a decline of 43.88 points or 7.76 percent, compared to July 2018.
The AGEM Index reported a year-over-year increase for the 35th consecutive month and has climbed 89.85 points, or 20.81 percent, since August 2017.
During the latest period, seven of the 13 global gaming equipment manufacturers reported month-to-month increases in stock price. Six manufacturers reported decreases in stock price during the month.
The major stock market indices saw gains during the month. The S&P 500 reported a month-to-month increase of 3.03 percent to 2,901.52. The Dow Jones Industrial Average grew 2.16 percent to 25,964.82, while the NASDAQ increased 5.71 percent during the period to 8,109.54.
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During August, Everi Holdings Inc. (EVRI) released its results for the second quarter of fiscal year 2018. During period ending on June 30, 2018, Everi’s adjusted revenues increased by 16.2 percent on a year-over-year basis, growing from $102.1 million to $118.7 million. Revenue growth was driven by a 25.0 percent increase in year-over-year gaming unit sales as well as year-over-year increases in the installed base and estimated daily win per unit. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 10.0 percent on a year-over-year basis during the second quarter of fiscal year 2018, growing from $54.1 million to a quarterly record $59.5 million. Adjusted EBITDA margins did decrease, dropping on a year-over-year basis from 53.0 percent to 50.1 percent.
TransAct Technologies (TACT) released its second quarter results for the period ending June 30, 2018. On a year-over-year basis, TransAct’s net sales increased 8.8 percent, growing from $13.6 million to $14.8 million. Net sales growth was driven by 23.3 percent year-over-year growth in the company’s restaurant solutions space, and 77.3 percent year-over-year growth in the casino and gaming space. The company’s adjusted EBITDA increased by 17.6 percent on a year-over-year basis, growing from $1.7 million to $1.9 million. Adjusted EBITDA growth was largely attributable to year-over-year net income growth of 40.0 percent. Adjusted EBITDA margin for the second quarter was 13.5 percent, up from 12.5 percent a year ago.
Gaming Partners International (GPIC) reported strong results for the second quarter of fiscal year 2018. On a year-over-year basis, the company’s quarterly net revenues increased by 51.6 percent, growing from $16.3 million to $24.7 million. This was attributed to increases in sales of casino currency, gaming furniture and table accessories. Consequently, the company’s gross profit also increased on a year-over-year basis by 116.1 percent, growing from $3.9 million to $8.3 million, and its gross profit margin increased from 23.7 percent to 33.8 percent. Gross profit growth was also a consequence of strong sales performance.
Scientific Games Corporation (SGMS) had a busy August 2018, establishing and extending a number of important partnerships. For starters, Scientific Games helped Caesars Entertainment launch its sportsbook operations in Tunica, Miss., at the company’s Horseshoe Tunica Hotel & Casino. The sportsbook platform at this site uses Scientific Games’ OpenBet product suite. Scientific Games also introduced numerous new gaming platforms in Kansas, such as the Racetrax virtual race platform, which mixes horse racing and keno payouts, and is available at every Kansas Lottery retail establishment. Lastly, Scientific Games also extended its contract with the Louisiana Lottery for instant games by another five years.
