Association of Gaming Equipment Manufacturers


Association of Gaming Equipment Manufacturers

The AGEM Index reached another record high in April, continuing the momentum from previous months.

Association of Gaming Equipment Manufacturers
April 2017
he AGEM Index reached another record high in
April, continuing the momentum from previous
months. The composite index stood at 371.50
points at the close of April 2017, which
represents an increase of 10.22 points, or 2.8 percent,
when compared to March 2017. The AGEM Index
reported a year-over-year increase for the 19th
consecutive month, rising 144.99 points, or 64.0
percent, when compared to April 2016. Selected positive contributors to the April 2017 AGEM
Index included the following:
During the latest period, nine of the 13 global gaming
equipment manufacturers reported month-to-month
increases in stock price, with two up by more than 10
percent. Three manufacturers reported decreases in
stock price during the month and one manufacturer
posted a flat performance.
T
The broader stock markets produced mixed results in
March. The S&P 500 reported a slight month-to-month
increase, rising 0.09 percent to 2,384.20. Additionally,
the Dow Jones Industrial Average increased 1.3 percent
to 20,940.51, while the NASDAQ increased 2.3 percent
during the period to 6,047.61.
AGEM
Agilysys
Exchange: Symbol
(Currency)
Nasdaq: AGYS (US$)
▪ Aristocrat Technologies (ALL) contributed 8.85 points
due to a 9.29 percent increase in stock price to
AU$19.64.
▪ Crane Co. (CR) reported a 6.79 percent increase in
stock price to $79.91 and contributed 4.18 points.
▪ Everi Holdings (EVRI) contributed 1.77 points due to
a 32.57 percent increase in stock price to $6.35.
Selected negative contributors included the following:
▪ With its stock price falling 6.33 percent to $22.20,
International Game Technology (IGT) contributed
negative 3.68 points.
▪ Konami Corp. (TYO:9766) contributed negative 1.47
points to the index due to a 1.9 percent decline in
stock price to ¥4,635.
A number of global gaming suppliers have identified the
State of Nevada as key market for manufacturing
operations and back-office support. The southern portion
of the state, which includes the Las Vegas area,
continues to make strides in capturing the attention of
the supplier industry. Aristocrat Technologies recently
entered into an arrangement with Summerlin, a premier
master planned community in Las Vegas, for the
development of a new multi-building campus.
Howard Hughes Corporation, developer of Summerlin,
revealed plans for two buildings near Hualapai Way and
the Interstate-215 comprising of 180,000 square feet of
space dedicated for Aristocrat. Construction on the
project is expected to proceed in the second quarter of
2017 with an expected completion date of late 2018.
The facilities will accommodate 600 employees who are
currently spread among different buildings in the Las
Vegas area. Aristocrat has signed a 15-year build-to-suit
lease agreement, and the project is expected to cost
approximately $45 million, exclusive of land costs.
April 2017
With the addition of a centralized campus for Aristocrat,
gaming manufacturers continue to value a presence in
Las Vegas and solidify the city as one of the centers for
innovation in the gaming manufacturing market.
In other recent news, IGT is proceeding with the sale of
its social casino subsidiary. IGT is expected to sell Double
Down Interactive LLC to DoubleU Games Co. Ltd, a Seoul-
based affiliate, in the second quarter of this year. The
sale price of $825 million represents a 10.5 times
multiplier on the 2016 adjusted earnings figures of the
subsidiary.
IGT made the announcement on April 18, 2017, citing
the need to deleverage the balance sheet and capitalize
on the recent valuation. IGT originally purchased Double
Down for $500 million in 2012 but has seen revenues
and daily active users decline in the most recent year. As
part of the agreement, DoubleU will be able to license
and offer IGT’s social games on its platforms while paying
royalties to IGT. IGT’s stock has responded positively
during the second half of the month of April.
Aristocrat joins several other manufacturers, including
International Game Technology, Scientific Games
Corporation and Ainsworth Game Technology, with
offices in the southwestern region of the Las Vegas area.
Both Ainsworth and Aristocrat are based in Australia
while Las Vegas serves as the headquarters for
Ainsworth’s North American operations.
The AGEM Index AGEM Membership Roster
The Association of Gaming Equipment Manufacturers (AGEM)
produces the monthly AGEM Index that comprises 13 global
gaming suppliers throughout the world. A total of 8 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 supplier trades on the Athens 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 Gold Members:
AGS
Ainsworth Game Technology
Aristocrat Technologies
NOVOMATIC Group
Everi Holdings Inc.
International Game Technology PLC (IGT)
Intralot S.A.
Konami Gaming
Merkur Gaming
Sega Sammy Creation
Scientific Games
AGS
Ainsworth Game Technology
Aristocrat Technologies
NOVOMATIC Group
Everi Holdings Inc.
International Game Technology PLC (IGT)
Intralot S.A.
Konami Gaming
Merkur Gaming
Sega Sammy Creation
Scientific Games
AGEM Silver Members: Action Gaming, Aruze Gaming America,
Casino Technology, Crane Payment Innovations (CPI), Gaming
Partners International (GPI), JCM Global, NYX Gaming Group, Ortiz
Gaming, Quixant PLC, Suzo-Happ Group, TCSJohnHuxley, William Hill
US and Zitro.
AGEM Bronze Members : Abbiati Casino Equipment, Alfastreet,
About AGEM
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 Index
The AGEM index and overview is
prepared by Applied Analysis (AA).
AA is a Nevada-based advisory
services firm providing consultation services for public and
private entities. The company utilizes extensive experience in
economics, information technology and finance to provide a
wide range of services, including urban economic consulting,
financial advisory services, market analysis, public policy
analysis, hospitality industry and gaming consulting, and
information system and technology consulting.
For More Information, Contact:
Marcus Prater, Executive Director
P.O. Box 50049, Henderson, NV 89016-0049
702.812.6932 | AGEM.org@cox.net
Amatic Industries, APEX gaming, Astro Corp., BetConstruct,
Bingotimes Digital Technology, Boss Gaming, Cammegh Limited,
Century Gaming Technologies, CG Technology (CGT), Cole Kepro
International, Euro Games Technology (EGT), Exacta Systems, FBM,
Galaxy Gaming, Gamblit Gaming, GameCo, Gaming Arts, Gaming
Support, Glory Global Solutions, Grand Vision Gaming, Incredible
Technologies, Inspired Gaming, Interblock USA, Intervision Gaming,
ISMS, Iverson Gaming Systems, Jumbo Technology, Matsui Gaming
Machine Co., Metronia, Patriot Gaming & Electronics, Spintec, Table
Trac, Vantiv Entertainment Solutions, Wells-Gardner Technologies
and Win Systems.
AGEM Associate Members: 3M Touch Systems, Adlink Technology,
Advantech-Innocore, Agilysys, AMD, Arrow International, Asimex
Global, Atrient, Automated Cashless Systems, AVUITY, Axiomtek,
British Group Interactive (BGI), Camryn Industries, CardConnect,
Carmanah Signs, Casino Connection International, Casino Screens,
Catapult Global, CDC Gaming Reports, CMC Trading Engineering,
Cooper Levenson, Digital Instinct, DiTronics Financial Services, Duane
Morris LLP, EFCOtec Corporation, Eilers & Krejcik Gaming, Elite
Gaming Technology, Esterline Interface Technologies, Fantini
Research, Finnegan, Henderson, Farabow, Garrett & Dunner, Fox
Rothschild, G2 Game Design, Gambling Compliance, GAN, Gaming
and Entertainment Touch Technology, Gaming Capital Group, Ganlot,
Gary Platt Manufacturing, Genesis Interactive Technologies,
GeoComply USA, Global Gaming Group (G3), Greenberg Traurig,
Holley, Driggs, Walch, Fine, Wray, Puzey & Thompson, House
Advantage, Howard & Howard, Impact Display Solutions, Intel, IPS,
James Industries, James Industry Research Group, JCS Technologies,
Jones Walker, KEY-BAK, Kontron, Lazcano Sámano, Lewis Roca
Rothgerber Christie, Lightstone Solutions, Majestic Realty, Media
Resources, Metalcraft, NanoLumens, Olsen Gaming / Spectronix,
Outpost Creative, Passport Technology, Patir Casino Seating, Portilla
Ruy-Díaz y Aguilar, Proforma GPS, Regulatory Management
Counselors (RMC), RMMC, RSM US LLP, SAP, SCA Gaming, Sightline
Payments, Slot Constructor, Southwest Manufacturing Services, Spin
Games, StylGame USA, Taft Stettinius & Hollister, Talent Associates,
The Bright Group, Tohkoh Plastics America, Touch Dynamic, Touch
Embedded Solutions, Tournament One, TOVIS, TraffGen USA,
TransAct Technologies, Veridocs, Wells Fargo, Young Electric Sign
Company (YESCO) and Zebra Technologies.

The AGEM Index reached another record high in April, continuing the momentum from previous months. The composite index stood at 371.50 points at the close of April 2017, which represents an increase of 10.22 points, or 2.8 percent,when compared to March 2017. The AGEM Index reported a year-over-year increase for the 19th consecutive month, rising 144.99 points, or 64.0 percent, when compared to April 2016.

 

During the latest period, nine of the 13 global gaming equipment manufacturers reported month-to-monthincreases in stock price, with two up by more than 10 percent. Three manufacturers reported decreases instock price during the month and one manufacturer posted a flat performance. The broader stock markets produced mixed results in March. The S&P 500 reported a slight month-to-month increase, rising 0.09 percent to 2,384.20. Additionally,the Dow Jones Industrial Average increased 1.3 percentto 20,940.51, while the NASDAQ increased 2.3 percentduring the period to 6,047.61.

 

Selected positive contributors to the April 2017 AGEMIndex included the following:


Aristocrat Technologies (ALL) contributed 8.85 pointsdue to a 9.29 percent increase in stock price to AU$19.64.▪ Crane Co. (CR) reported a 6.79 percent increase instock price to $79.91 and contributed 4.18 points.▪ Everi Holdings (EVRI) contributed 1.77 points due toa 32.57 percent increase in stock price to $6.35. Selected negative contributors included the following:▪ With its stock price falling 6.33 percent to $22.20,International Game Technology (IGT) contributednegative 3.68 points.▪ Konami Corp. (TYO:9766) contributed negative 1.47 points to the index due to a 1.9 percent decline instock price to ¥4,635.

 

A number of global gaming suppliers have identified the State of Nevada as key market for manufacturing operations and back-office support. The southern portion of the state, which includes the Las Vegas area, continues to make strides in capturing the attention of the supplier industry. Aristocrat Technologies recently entered into an arrangement with Summerlin, a premiermaster planned community in Las Vegas, for the development of a new multi-building campus.



Howard Hughes Corporation, developer of Summerlin, revealed plans for two buildings near Hualapai Way and the Interstate-215 comprising of 180,000 square feet of space dedicated for Aristocrat. Construction on the project is expected to proceed in the second quarter of2017 with an expected completion date of late 2018. The facilities will accommodate 600 employees who arecurrently spread among different buildings in the Las Vegas area. Aristocrat has signed a 15-year build-to-suit lease agreement, and the project is expected to cost approximately $45 million, exclusive of land costs.

 

Aristocrat joins several other manufacturers, including International Game Technology, Scientific Games Corporation and Ainsworth Game Technology, with offices in the southwestern region of the Las Vegas area. Both Ainsworth and Aristocrat are based in Australia while Las Vegas serves as the headquarters forAinsworth’s North American operations.


With the addition of a centralized campus for Aristocrat, gaming manufacturers continue to value a presence in Las Vegas and solidify the city as one of the centers for innovation in the gaming manufacturing market.


In other recent news, IGT is proceeding with the sale ofits social casino subsidiary. IGT is expected to sell Double Down Interactive LLC to DoubleU Games Co. Ltd, a Seoul-based affiliate, in the second quarter of this year. Thesale price of $825 million represents a 10.5 timesmultiplier on the 2016 adjusted earnings figures of the subsidiary.


IGT made the announcement on April 18, 2017, citingthe need to deleverage the balance sheet and capitalize on the recent valuation. IGT originally purchased DoubleDown for $500 million in 2012 but has seen revenues and daily active users decline in the most recent year. Aspart of the agreement, DoubleU will be able to licenseand offer IGT’s social games on its platforms while payingroyalties to IGT. IGT’s stock has responded positivelyduring the second half of the month of April.

 

The AGEM Index AGEM 

 
The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index that comprises 13 global gaming suppliers throughout the world. A total of 8 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 supplier trades on the Athens exchange, one on the Tokyo exchange, and another trades on the Taiwan OTC exchange. The index is computed based on the month-endstock 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 January2005.

 

About AGEM
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 goodcorporate 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 Index
The AGEM index and overview isprepared by Applied Analysis (AA).AA is a Nevada-based advisory services firm providing consultation services for public and private entities. The company utilizes extensive experience in economics, information technology and finance to provide awide range of services, including urban economic consulting, financial advisory services, market analysis, public policyanalysis, hospitality industry and gaming consulting, and information system and technology consulting.

 

AGEM Membership
RosterAGEM Gold Members:
 AGS
Ainsworth Game Technology
Aristocrat Technologies
NOVOMATIC Group
Everi Holdings Inc.
International Game Technology PLC (IGT)
Intralot S.A.
Konami Gaming
Merkur Gaming
Sega Sammy Creation
Scientific Games

 

AGEM Silver Members:
Action Gaming, Aruze Gaming America,Casino Technology, Crane Payment Innovations (CPI), GamingPartners International (GPI), JCM Global, NYX Gaming Group, OrtizGaming, Quixant PLC, Suzo-Happ Group, TCSJohnHuxley, William HillUS and Zitro.

 

AGEM Bronze Members:


Abbiati Casino Equipment, Alfastreet,Amatic Industries, APEX gaming, Astro Corp., BetConstruct,Bingotimes Digital Technology, Boss Gaming, Cammegh Limited,Century Gaming Technologies, CG Technology (CGT), Cole KeproInternational, Euro Games Technology (EGT), Exacta Systems, FBM,Galaxy Gaming, Gamblit Gaming, GameCo, Gaming Arts, GamingSupport, Glory Global Solutions, Grand Vision Gaming, IncredibleTechnologies, Inspired Gaming, Interblock USA, Intervision Gaming,ISMS, Iverson Gaming Systems, Jumbo Technology, Matsui GamingMachine Co., Metronia, Patriot Gaming & Electronics, Spintec, TableTrac, Vantiv Entertainment Solutions, Wells-Gardner Technologiesand Win Systems.

 

AGEM Associate Members:


3M Touch Systems, Adlink Technology,A dvantech-Innocore, Agilysys, AMD, Arrow International, AsimexGlobal, Atrient, Automated Cashless Systems, AVUITY, Axiomtek,British Group Interactive (BGI), Camryn Industries, CardConnect,Carmanah Signs, Casino Connection International, Casino Screens,Catapult Global, CDC Gaming Reports, CMC Trading Engineering,Cooper Levenson, Digital Instinct, DiTronics Financial Services, DuaneMorris LLP, EFCOtec Corporation, Eilers & Krejcik Gaming, EliteGaming Technology, Esterline Interface Technologies, FantiniResearch, Finnegan, Henderson, Farabow, Garrett & Dunner, FoxRothschild, G2 Game Design, Gambling Compliance, GAN, Gamingand Entertainment Touch Technology, Gaming Capital Group, Ganlot,Gary Platt Manufacturing, Genesis Interactive Technologies,GeoComply USA, Global Gaming Group (G3), Greenberg Traurig,Holley, Driggs, Walch, Fine, Wray, Puzey & Thompson, HouseAdvantage, Howard & Howard, Impact Display Solutions, Intel, IPS,James Industries, James Industry Research Group, JCS Technologies,Jones Walker, KEY-BAK, Kontron, Lazcano Sámano, Lewis RocaRothgerber Christie, Lightstone Solutions, Majestic Realty, MediaResources, Metalcraft, NanoLumens, Olsen Gaming / Spectronix,Outpost Creative, Passport Technology, Patir Casino Seating, PortillaRuy-Díaz y Aguilar, Proforma GPS, Regulatory ManagementCounselors (RMC), RMMC, RSM US LLP, SAP, SCA Gaming, SightlinePayments, Slot Constructor, Southwest Manufacturing Services, SpinGames, StylGame USA, Taft Stettinius & Hollister, Talent Associates,The Bright Group, Tohkoh Plastics America, Touch Dynamic, TouchEmbedded Solutions, Tournament One, TOVIS, TraffGen USA,TransAct Technologies, Veridocs, Wells Fargo, Young Electric SignCompany (YESCO) and Zebra Technologies.