January 11, 2010 11:00 ET

Association of Gaming Equipment Manufacturers Releases December 2009 Index

LAS VEGAS, NV--(Marketwire - January 11, 2010) - On pace with the broader markets, the AGEM Index closed the month of December 2009 at 106.32, up 1.59 points or 1.52 percent from the previous month. During the month, one global gaming supplier, Konami, contributed a full point to the index while the balance of the sector contributed modest movement to the index. While the S&P 500 gained 1.78 percent over the same period, both markets ended the year with significant gains as they rebounded from low points reached nearly 12 months ago. The AGEM Index outperformed the S&P 500 for the year, posting a gain of 33.0 percent, while the broader market ended the year up nearly 27.8 percent.

Selected positive contributors to the index during the month include: (1) Konami (KNM) with the only significant contribution, adding 1.13 points to the index based on a 9.02-percent increase in its stock price and (2) WMS Industries (WMS) contributing 0.35 points with a 2.88-percent increase in its stock performance.

Selected negative contributors to the index include: (1) International Game Technology (IGT) with its stock price dropping a negligible 0.64 percent, contributing -0.19 points to the index and (2) Aristocrat Technologies (ATI) posting -0.18 points to the index with a 0.25-percent decline in its stock valuation.

Compared to the prior year, the stocks of global gaming suppliers have generally improved as the latest recessionary cycle finds a bottom, gratuitous costs cut were realized and balance sheet concerns were eliminated for some. However, while the last six-months of the year can be regarded as a great turnaround, general concerns surrounding the gaming environment hang over the sector. Consumer spending, willingness to travel, and capital expenditures into new and existing markets are just a few that will drive the index in 2010.

                 Exchange:          Stock Price      Percent Change Index
                  Symbol           At Month End      Prior   Prior  Contri-
                (Currency)      Dec-09 Nov-09 Dec-08 Period  Year   bution

 Technology   ASX: AGI (AU$)     0.18   0.19   0.08  (5.26)  125.00  (0.02)
 Technologies ASX: ALL (AU$)     4.02   4.03   3.88  (0.25)    3.61  (0.18)
Astro Corp.   Taiwan: 3064      74.00  73.20  41.35   1.09    78.96   0.01
 Technologies NYSE: BYI (US$)   41.29  41.53  24.03  (0.58)   71.83  (0.07)
Elixir Gaming
 Technologies AMEX: EGT (US$)    0.25   0.28   0.13 (10.71)   92.31  (0.02)
International Nasdaq: GMTC (US$) 1.40   1.46   1.45  (4.11)   (3.45) (0.00)
International Nasdaq: GPIC (US$) 5.61   5.30   5.24   5.85     7.06   0.01
Global Cash
 Access       NYSE: GCA (US$)    7.49   7.44   2.22   0.67   237.39   0.02
IGT           NYSE: IGT (US$)   18.77  18.89  11.89  (0.64)   57.86  (0.19)
INTRALOT S.A. ATHEX: INLOT       4.10   3.68   3.00  11.41    36.67   0.32
Konami        NYSE: KNM (US$)   18.00  16.51  25.86   9.02   (30.39)  1.13
Lottomatica   MILAN: LTO.MI     14.03  13.34  17.60   5.17   (20.28)  0.08
 (GTECH)         (EUR)
 Games        Nasdaq: MGAM (US$) 6.01   5.49   2.38   9.47   152.52   0.08
 Master       Nasdaq: SHFL (US$) 8.24   8.17   4.96   0.86    66.13   0.02
 Technologies Nasdaq: TACT (US$) 6.94   6.21   4.59  11.76    51.20   0.04
 Electronics  AMEX: WGA (US$)    2.27   2.41   0.60  (5.81)  278.33  (0.01)
 Industries   NYSE: WMS (US$)   40.00  38.88  26.90   2.88    48.70   0.35

Change in
 Index Value                                                          1.59

 2009                                                               104.73

 2009                                                               106.32


The AGEM index continued its recovery in December, largely helped by broader financial market gains yet supported by a combination of gaming-related events during the month that have implications for the gaming equipment suppliers. Relatively favorable dynamics in the two largest gaming markets, Las Vegas and Macau, drove sentiment during the period. This included continued visitation gains in Vegas during the fourth quarter in conjunction with lower room rate declines. Ultimately, this suggests 2010 could mark a recovery that would lead to an ultimate boost in sorely needed casino capital expenditure budgets target gaming equipment. Macau's November results, reported in December, demonstrated significant strength surrounding Chinese President Hu Jintao's visit to celebrate the 10th anniversary of Macau's return to China and new leadership taking office.

During the month, Penn National received final approval for its Kansas joint venture, while Boot Hill in Kansas was the first casino to open in the state. The industry will enjoy the benefit of table approvals at Charlestown in West Virginia, e-tables going live in Florida racinos, Maryland's largest VLT parlor finally getting approval at Arundel Mills, and further momentum for live table games in Pennsylvania. These expansion dynamics were offset by an indefinite opening delay at Ocean Downs in Maryland along with the Baltimore City group leaving the process. Protection from smoking bans in Atlantic City and Detroit supported positive sentiment during the month as well. On the company front, WMS reiterated financial guidance during December, a function of better visibility following November's G2E along with maniacal expense management, and MGM's CityCenter finally opened with a highly visible server-based gaming install that appears to be functioning well and has been well received.

The AGEM Index

The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index that comprises 17 global gaming suppliers throughout the world. A total of 12 suppliers are based in the United States and are listed on the NYSE, Nasdaq or AMEX, while two trade on the Australian exchange, one supplier trades on the Athens exchange, one trade on the Milan 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.

About AGEM

AGEM is an international trade association representing manufacturers and suppliers of electronic gaming devices, systems, table games, key components and support products and services for the gaming industry. The Association works to further the interests of gaming equipment suppliers 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 has assisted regulatory commissions and participated in the legislative process to solve problems and create a positive business environment.

AGEM Membership Roster

The current AGEM membership roster, 81 strong, is a who's who of the supplier segment of the global gaming industry: AGEM Gold Members: Aristocrat Technologies, Aruze Gaming America, Austrian Gaming Industries, Bally Technologies, GTECH/Atronic/Spielo, International Game Technology (IGT), INTRALOT S.A., Konami Gaming and WMS Gaming. AGEM Silver Members: AC Coin & Slot, Action Gaming, Casino Technology, Interblock USA, JCM Global, MEI, Multimedia Games, Octavian International, Shuffle Master, Suzo-Happ Group, TCSJohnHuxley and Wells-Gardner Electronics. AGEM Bronze Members: Ainsworth Game Technology, Astro Corp., Cadillac Jack, Cammegh Limited, CashCode / Crane Payment Solutions, Diamond Game, Digital Display Group, Euro Games Technology (EGT), GameTech International, Gaming Support, Incredible Technologies, Jumbo Technology, KGM Gaming, MCA Processing, Modern Gaming, Rocket Gaming Systems and Summit Gaming. AGEM Associate Members: CMYK Creative, Cole Industries, Cybertec Gaming Systems, DynaGraphic Printing, Elite Casino Products, Esterline Advanced Input Systems, FutureLogic, Gaming Partners International, Gary Platt Manufacturing, Global Cash Access, Global Gaming Group (G3), Grand Products, Greenberg Traurig LLP, Howard & Howard, IdeaWork Studios, IDX, Intel, IPS, James Industries, Kreller Group, KSK, Lewis & Roca, Masterpiece Advertising, MC2, Mikohn Signs and Graphics, Money Controls, Nanoptix, Paokai Electronic Enterprise Co., Proforma GPS, Regulatory Management Counselors, Sanmina-SCI, Strategy9, Talent Associates, Tgraphics/Outpost Productions, The Bright Group, 3M Touch Systems, Tournament One, TMX, Trade Show Fabrications, TransAct Technologies, Veridocs, Wrex Products and Young Electric Sign Company (YESCO).

AGEM Index and Overview

The AGEM index and overview is prepared by Applied Analysis (AA). AA is a Nevada-based advisory services firm providing a wide range of 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.

Industry Analysis

Industry Analysis is prepared by Union Gaming Group (UGG). UGG is an independent research firm, government and industry advisor, focusing on the global gaming business. UGG provides research, access and advisory services and offers varying levels of research products and services, which capitalize on UGG's relationships with corporate managements, governments, and other parties relevant to the global gaming business.

Contact Information

  • Contact for AGEM release:
    Marcus Prater
    AGEM Executive Director
    (702) 812-6932
    Email Contact