Gaming Equipment Manufacturers See (Mostly) Rising Stock Prices in December

Posted on: January 10, 2018, 07:30h. 

Last updated on: January 11, 2018, 09:32h.

The Association of Gaming Equipment Manufacturers (AGEM) Index posted notable gains for the fourth consecutive month, a positive indicator of growth for the multibillion-dollar casino equipment sector.

Trevor Croker, Aristocrat Technologies
Aristocrat CEO Trevor Croker has steered his company ship through a rising tide that speaks well for companies across the AGEM Index. (Image: Startup Daily)

The composite index includes 12 publicly traded gaming equipment manufacturing companies listed on various international stock exchanges, and for December, the AGEM index gained 24.14 points (4.9 percent), closing the month at 516.79.

Overall, seven of the 12 companies posted gains for the month, while five saw their stock prices drop. However, there were no individually dramatic changes, as all listed manufacturers saw gains or decreases in the single digits only.

Rising Trajectories

The biggest monthly winner was Aristocrat Leisure Limited. The Australian company’s stock price rose more than nine percent over the course of the month to AUD 23.70 ($18.59) per share. Everi Holdings took the largest tumble, falling by 7.48 percent to $7.54 a share.

When looking at year-over-year gains, 10 of the 12 AGEM firms are ahead of where they were a year ago. Four of them (Everi, Galaxy Gaming, Scientific Games, and Transact Technologies) doubled their stock price or better when compared to December 2016.

Taiwan-listed firm Astro Corp, however, stands out as an exception, down more than 50 percent year-over-year. The slot machine manufacturer has seen a 12-month drop from NT$27.20 ($0.92) to NT$13.50 ($0.46).

Several of the companies included in the index saw stock prices move based on recent quarterly and yearly financial reports.

International Game Technology (IGT) was down 3.56 percent in December, after posting a $556 million loss for Q3 2017, though the company has still performed well overall, with its stock up nearly 7 percent over the past year.

Ainsworth Game Technology saw a 32 percent year-over-year decline in annual profits, due in large part to some unfavorable currency exchange rates. But in that same yearly period, the company’s stock price was up more than 54 percent, likely due in part to a deal that saw Australian supplier Novomatic take a controlling interest in the company.

Gaming Equipment Performance Index

Overall, the AGEM Index has posted year-over-year increases for 27 consecutive months. Since November 2016, the overall index is up nearly 68 percent. The index price is based on an adjusted metric that started at 100 points in January 2005.

The AGEM is a non-profit international trade association that represents manufacturers and suppliers of a variety of different gaming devices and equipment. The association works to promote the interests of its members while working with regulatory agencies and legislative bodies around the world.

The AGEM Index comprises 13 gaming suppliers from across the world, traded in the US, Australia, Japan, and Taiwan. It’s based on month-end stock prices for each company and weighted based on approximate market capitalization.

AGEM Index Companies

Ainsworth Game Technology
Aristocrat Technologies
Astro Corp.
Galaxy Gaming
Gaming Partners International
Scientific Games
Transact Technologies