GGRAsia – AGEM Index for January down on December

AGEM Index for January down on December

Feb 11, 2016 Newsdesk Industry Talk, Latest News

The AGEM Index, which tracks the stock performance of the world’s major listed casino gaming equipment suppliers, rose 6.57 points, or 3.6 percent year-on-year, to 188.46 points in January.

But judged month-on-month, the index declined by 8.86 points, or nearly 4.5 percent, when compared to December 2015.

The Association of Gaming Equipment Manufacturers (AGEM) – which compiles the index in association with research firm Applied Analysis LLC – said that during January, 10 of the 14 gaming equipment manufacturers tracked by the index reported month-to-month declines in stock price, with three down by more than 30 percent.

Everi Holdings Inc – a specialist in cash handling technology – saw its stock price decline by nearly 36.0 percent month-on-month and nearly 57.5 percent year-on-year, at US$2.81, contributing a negative 0.83 points to the AGEM Index.

Scientific Games Corp – a lottery services and electronic casino games supplier – reported a stock price down 34.0 percent month-on-month and nearly 49.9 percent down year-on-year, at US$5.92, contributing a negative 2.15 points to the index.

International Game Technology Plc – a supplier of casino games and video lottery games – saw its stock price down 10.6 percent month-on-month and 14.5 percent year-on-year in January, at US$14.47, adding a negative 3.77 points to the index.

“Of the four manufacturers [that] reported gains in stock price during the month, only one was up by more than five percent,” stated AGEM.

“Gaming equipment manufacturers are continuing to witness the effects of consolidation within the industry,” added the trade body.

It noted that Ainsworth Game Technology Ltd’s completion of the acquisition of Nova Technologies LLC in January was the “third purchase of a Class II slot company to occur since the end of 2014”. The latter was a reference to types of electronic gaming products developed and marketed for the Native American or “tribal” casino markets in North America.

“The acquisition brings the total number of gaming units Ainsworth operates in North America to over 2,800, with 1,425 units coming directly from Nova Technologies,” said AGEM.

“Nova’s slot manufacturing business will be transferred to Ainsworth’s new 291,000-square-foot [27,035 sq metre] headquarters in Las Vegas, Nevada, which is currently under construction with completion expected in the second quarter of 2016,” added the trade body.