GGRAsia – AGEM Index extends gains in July, supported by Sci Games

AGEM Index extends gains in July, supported by Sci Games

Aug 08, 2017 Newsdesk Industry Talk, Latest News

The AGEM Index, which tracks the stock performance of major listed firms in the casino equipment supply sector, reached a record high in July.

The composite index stood at 423.92 points at the close of July, an increase of 1.97 points – or 0.5 percent – compared to June, continuing a growth trend started in December 2016.

The AGEM Index reported a year-on-year increase for the 22th consecutive month, rising 129.24 points – or 43.9 percent – when compared to July 2016.

The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index in association with research firm Applied Analysis LLC.

During the July 2017 reporting period, only six of the 13 global gaming equipment manufacturers tracked by the index reported month-on-month increases in stock price. The index’s positive performance in July was in part due to Nasdaq-listed Scientific Games Corp: the firm recorded a 40.3-percent jump in stock price compared to June.

Scientific Games reported last month second quarter revenue of US$766.3 million, up by 5.1 percent from the prior-year period and above market expectations. The casino equipment maker and lottery services provider said the revenue growth was driven by its gaming and interactive segments.

Australian Securities Exchange-listed Ainsworth Game Technology Ltd was AGEM Index’s second biggest gainer for the period, with a month-on-month share price increase of 11.6 percent for July.

The AGEM 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 capitalisation. It is based on a 100-point value recorded as of January 2005.

AGEM is a non-profit international trade association representing manufacturers and suppliers of electronic gaming devices, systems, table games, online technology, key components, and support products and services for the gaming industry.