Crane, Aristocrat, IGT lead the pack with substantial gains
The American Gaming Equipment Manufacturers (AGEM) Index increased in July 2018. The composite index finished the month at 565.39 points, a gain of 19.02 points or 3.48 percent, compared to June 2018. The AGEM Index reported a year-over-year increase for the 34th consecutive month and has climbed 141.46 points, or 33.37 percent, since July 2017.
During the latest period, eight of the 13 global gaming equipment manufacturers reported month-to-month increases in stock price. Five manufacturers reported decreases in stock price during the month.
The major stock market indices also saw gains during the month. The S&P 500 reported a month-to-month increase of 3.60 percent to 2,816.29. The Dow Jones Industrial Average grew 4.71 percent to 25,415.19, while the NASDAQ increased 2.15 percent during the period to 7,671.79.
Positive contributors to the July 2018 AGEM Index included the following:
Crane Co. (CR) contributed 9.88 points due to a 13.03 percent increase in stock price to $90.57.
Aristocrat Leisure Limited (ASX: ALL) reported a 4.21 percent increase in stock price to AU$32.20, contributing 9.67 points.
International Game Technology PLC (IGT) contributed 6.35 points due to an 8.78 percent increase in stock price to $25.28.
During July, International Game Technology PLC (IGT) released its second quarter results. During the quarter that ended on June 30, 2018, IGT generated $1.2 billion of consolidated revenue, a decrease of 1.5 percent from the second quarter of 2017. Despite the decrease in revenue, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew 4.2 percent on a year-over-year basis, reaching $442 million for the second quarter. This improvement in performance is attributable to strong worldwide lottery performance. Adjusted EBITDA margins also improved by 2.0 percent on a year-over-year basis, growing from 34.8 percent for the second quarter of 2017 to 36.8 percent for the second quarter of 2018.
Scientific Games (SGMS) released its results for the second quarter of 2018. Scientific Games experienced strong year-over-year revenue growth, with revenue rising 10.2 percent from $766.3 million to $844.7 million. Revenue growth during this period was primarily driven by $50.6 million of revenue from NYX, which was acquired during the third quarter of 2017. Adjusted EBITDA also rose 8.1 percent on a year-over-year basis, growing from $314.8 million during the second quarter of 2017 to $340.4 million during the second quarter of 2018. Despite this growth, Adjusted EBITDA margins declined slightly on a year-over-year basis, dropping from 41.1 percent for the second quarter of 2017 to 40.3 percent for the second quarter of 2018.
The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index that comprises 13 global gaming suppliers throughout the world. A total of eight suppliers are based in the United States and are listed on the NYSE, Nasdaq or OTC market, while two trade on the Australian exchange, one on the Tokyo exchange, and another trades on the Taiwan OTC exchange. The index is computed based on the month-end stock price (adjusted for dividends and splits) of each company and weighted based on approximation of market capitalization. Market capitalizations for manufacturers trading on foreign exchanges have been converted to US dollar-equivalents as of month-end for comparability purposes. The AGEM Index is based on a 100-point value as of January 2005.
AGEM is an international trade association representing manufacturers of electronic gaming devices, systems, lotteries, and components for the gaming industry. The Association works to further the interests of gaming equipment manufacturers throughout the world. Through political action, tradeshow partnerships, information dissemination and good corporate citizenship, the members of AGEM work together to create benefits for every company within the organization. Together, AGEM and its member organizations have assisted regulatory commissions and participated in the legislative process to solve problems and create a positive business environment.
AGEM Gold Members: AGS, Ainsworth Game Technology, Aristocrat Technologies, Everi, International Game Technology (IGT), Konami Gaming, Merkur Gaming, NOVOMATIC Group, Scientific Games and Sega Sammy Creation