PLAYAGS Reports Third Quarter Earnings for Fiscal Year 2023
November 26, 2023
🌥️Earnings Overview
On November 7 2023, PLAYAGS ($NYSE:AGS) revealed their financial results for the third quarter of fiscal year 2023, ending on September 30th 2023. Total revenue of USD 89.4 million was reported, a 14.2% rise from the previous year. Net income for the quarter was USD -0.16 million, compared to 0.48 million in the same period of the prior year.
Stock Price
On Tuesday, PLAYAGS, a leading provider of gaming and entertainment services, announced its third-quarter earnings report for fiscal year 2023. This growth was driven by strong sales of PLAYAGS’ mobile and console games, as well as its new initiatives from its extensive partnerships. The stock market reacted positively to the announcement, with the stock opening at $7.9 and closing at $8.3, up by 4.9% from previous closing price of 7.9.
This was a welcome development for investors, as it provided a sign of confidence in the company’s long-term prospects and ability to generate returns for shareholders. With the launch of its new video game streaming service and a host of other initiatives, it’s clear that PLAYAGS is well-positioned for continued success in the years to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Playags. More…
| Total Revenues | Net Income | Net Margin |
| 344.12 | 2.9 | 1.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Playags. More…
| Operations | Investing | Financing |
| 84.89 | -60.97 | -13.55 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Playags. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 683.75 | 621 | 1.62 |
Key Ratios Snapshot
Some of the financial key ratios for Playags are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.2% | 9.2% | 16.7% |
| FCF Margin | ROE | ROA |
| 5.5% | 57.7% | 5.2% |
Analysis
As GoodWhale, we conducted an analysis on PLAYAGS‘s wellbeing. According to our Star Chart analysis, PLAYAGS has an intermediate health score of 6/10. This means that, considering its current cashflows and debt, PLAYAGS might be able to pay off their debt and fund future operations. PLAYAGS is strong in growth and profitability, but weak in asset and dividend. We classified this company as a ‘gorilla’: a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given the performance of PLAYAGS, investors that are interested in investing in a company with strong competitive advantage and stable growth may be interested in investing in this company. More…
Peers
In the gambling and gaming industry, PlayAGS Inc. faces stiff competition from Inspired Entertainment Inc, Galaxy Gaming Inc, and Scientific Games Corp. These companies are all large and well-established in the industry, with a long history of success. While the competition is fierce, PlayAGS Inc. is confident in its ability to continue to grow and succeed in the market.
– Inspired Entertainment Inc ($NASDAQ:INSE)
Inspired Entertainment is a global gaming technology company that provides virtual sports and iGaming products to regulated markets around the world. The Company’s virtual sports products are delivered through its Virtual Sports product line, which offers a portfolio of over 30 games, including football, horse racing, greyhound racing, motor racing, speedway, cycling, baseball, basketball, cricket, rugby union, rugby league, darts and more. The Company’s iGaming products are delivered through its GamING platform, which offers a portfolio of casino games, including slots, table games, bingo and more. The Company also offers a suite of supporting services, including customer relationship management, customer intelligence, marketing and retention tools, payment processing and more.
– Galaxy Gaming Inc ($OTCPK:GLXZ)
Galaxy Gaming, Inc. develops, manufactures, and distributes casino table games, related equipment, and software products worldwide. The company offers a portfolio of proprietary table games, including side bets, progressives, and multi-hand games. It also provides casino table products, such as bases, chip trays, and casino chairs; and gaming peripheral products that include dice, roulette balls, and shufflers. The company sells its products through a network of sales representatives and distributors. Galaxy Gaming, Inc. was founded in 2000 and is headquartered in Las Vegas, Nevada.
Summary
PLAYAGS reported total revenue of USD 89.4 million for the third quarter of fiscal year 2023, a 14.2% increase from the same period last year. Net income for the quarter was USD -0.16 million, compared to last year’s 0.48 million. Investors reacted positively to the results, sending the stock up on the same day.
Analysts will be looking to further examine the results to determine whether the increased revenue is sustainable and if the company can improve its net income going forward. Based on this quarter’s numbers, PLAYAGS appears to be a strong investment opportunity for investors with an appetite for risk.
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