The AGEM Index increased in July 2018

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.

Selected negative contributors included the following:

• With its stock price falling 6.91 percent to ¥5,250, Konami Corp. (TYO: 9766) contributed negative 6.97 points.

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.

Agilysys Inc. (AGYS) also released its results for the first quarter of its fiscal year 2019, which ended March 31, 2018. During this quarter, Agilysys generated net revenue of $34.0 million, an increase of 0.5 percent from the $33.9 million in the prior year. Agilysys also achieved a gross profit of $17.9 million during the first quarter, up 7.3 percent from $16.7 million in the first quarter of the prior year. Gross profit margins grew by 3.4 percent on a year-over-year basis, increasing from 49.2 percent to 52.6 percent. Adjusted EBITDA grew on a year-over-year basis from $1.6 million to $3.1 million for the first quarter of fiscal year 2019. Adjusted EBITDA margins also grew from 4.8 percent to 9.2 percent over the same time period.

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.

PlayAGS Inc. (AGS) experienced strong results during the second quarter of 2018. On a year-over-year basis, total revenue increased by 45.4 percent, growing from $50.1 million to $72.8 million, and adjusted EBITDA grew by 40.2 percent from $26.1 million to $36.6 million. Adjusted EBITDA margins did decrease on a year-over-year basis from 52.1 percent to 50.2 percent, which management mainly attributed to equipment sales accounting for a greater percentage of total revenue.