AGEM Index reverses two-month downward slide in April

May 21, 2018 1:55 AM
  • Howard Stutz, CDC Gaming Reports
May 21, 2018 1:55 AM
  • Howard Stutz, CDC Gaming Reports

Substantial increases in the stock price of three of the largest slot machine manufacturers in April helped the AGEM Index reverse a two-month downward trend.

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The composite index, which covers the monthly stock prices of 13 worldwide gaming equipment providers, closed with a 5 percent increase as compared to March. April marked the 31st consecutive year-over-year monthly increase, and the AGEM Index is up 43 percent overall from a year ago. However, the Index fell in a month-to-month comparison in February and March.

The AGEM Index, which is produced by the Las Vegas-based financial advisor Applied Analysis for the Association of Gaming Equipment Manufacturers, saw less than half of the 13 companies report a month-to-month increase in their stock price.

However, the three large gaming equipment providers – Scientific Games Corp., Aristocrat Leisure Ltd of Australia, and International Game Technology – saw their stock prices jump in value during the month, which helped fuel the Index’s increase.

In its report, Applied Analysis wrote that Scientific Games had developed new promotional programs and renewed existing contracts during April that led to the Las Vegas-based gaming provider’s average daily stock price increasing more than 28 percent during the month.

“Scientific Games announced a series of Monopoly slot tournament events in partnership with Princess Cruises in which winners will compete for $200,000 on a Princess cruise,” Applied Analysis wrote. “The events are designed to celebrate Scientific Games’ long-standing licensing relationship with toy maker Hasbro.”

The company also extended its contract with the Kentucky Lottery Corporation for another eight years. In addition, the state will begin using a management system produced by Scientific Games to help maximize retail sales performance.

Aristocrat, which saw an 11 percent increase in its stock price on the Australian Exchange, provided new systems products to clients, including a system installed at the Ocean Downs Casino in Maryland, the fifth property operated by Churchill Downs to utilize the system.

IGT grew its average daily stock price almost 6 percent during the month.

Applied Analysis said the AGEM Index “paralleled” the performances of the three major stock market indices during the month, a positive trend for the composite.

The Index covers eight suppliers in the United States that are listed on the New York Stock Exchange, the Nasdaq National Market and the U.S. over-the-counter market. Two of the suppliers are traded on the Australian Exchange, and one each are traded on the Tokyo Exchange and the Taiwan over-the-counter Market.

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