LAS VEGAS, NV--(Marketwire - March 9, 2010) - By the end of February 2010, there was little movement in the AGEM Index, as the net impact of gains and losses for various global gaming suppliers remained relatively unchanged from the previous month. The index fell modestly by 0.60 points, or 0.6 percent, to close at 102.28. Earnings reports for the fourth quarter of 2009 are underway and the AGEM Index, similar to the broader equities markets, is reflecting investor reaction -- one of caution. Markets remain down for the calendar year, but up significantly from the lows reached 12 months ago. On a year-over-year basis, the AGEM Index and the S&P 500 are up 82.3 percent, and 50.4 percent, respectively. Investors have remained cautious as consumer confidence and the labor market continue to exhibit weakness, and debt in Greece raised concerns within the eurozone and its ability to recover from the latest downturn.
Selected positive contributors to the index during the month include: (1) Konami (KNM) with the largest contribution, adding 1.32 points to the index based on a 10.01-percent increase in its stock price and (2) Aristocrat Technologies (ALL) contributing 0.54 points with a 6.55-percent increase in its stock performance.
Selected negative contributors to the index include: (1) Lottomatica (LTO) with its stock price falling 7.87 percent, contributing -1.81 points to the index and (2) International Game Technology (IGT) posting -1.18 points to the index with a 4.31-percent decline in its stock valuation.
Fears of a double-dip recession continue with apprehension among investors, as a scenario of jobless recovery may become reality. Additionally, housing, consumer confidence and spending remain fragile creating a longer road to recovery. Finally, gaming expansions in key jurisdictions remain a bright spot in an otherwise challenging environment.
| AGEM | Exchange: Symbol | Stock Price At Month End | Percent Change | Index | |||
| (Currency) | Feb-10 | Jan-10 | Feb-09 | Prior Period | Prior Year | Contribution | |
| Ainsworth Game Technology | ASX: AGI (AU$) | 0.16 | 0.18 | 0.06 | (11.43) | 158.33 | (0.03) |
| Aristocrat Technologies | ASX: ALL (AU$) | 4.23 | 3.97 | 3.71 | 6.55 | 14.02 | 0.54 |
| Astro Corp. | Taiwan: 3064 (NT$) | 66.00 | 67.00 | 48.35 | (1.49) | 36.50 | (0.01) |
| Bally Technologies | NYSE: BYI (US$) | 41.41 | 39.67 | 18.60 | 4.39 | 122.63 | 0.53 |
| Elixir Gaming Technologies | AMEX: EGT (US$) | 0.28 | 0.26 | 0.07 | 5.77 | 292.86 | 0.01 |
| GameTech International | Nasdaq: GMTC (US$) | 1.76 | 1.60 | 0.82 | 10.00 | 114.63 | 0.01 |
| Gaming Partners International | Nasdaq: GPIC (US$) | 5.56 | 5.66 | 6.54 | (1.77) | (14.98) | (0.00) |
| Global Cash Access | NYSE: GCA (US$) | 7.49 | 8.10 | 2.81 | (7.53) | 166.55 | (0.21) |
| IGT | NYSE: IGT (US$) | 17.55 | 18.34 | 8.82 | (4.31) | 98.98 | (1.18) |
| INTRALOT S.A. | ATHEX: INLOT (€) | 3.47 | 3.20 | 3.48 | 8.44 | (0.29) | 0.18 |
| Konami | NYSE: KNM (US$) | 18.68 | 16.98 | 13.83 | 10.01 | 35.07 | 1.32 |
| Lottomatica (GTECH) | MILAN: LTO.MI (€) | 13.22 | 14.35 | 12.70 | (7.87) | 4.09 | (1.81) |
| Multimedia Games | Nasdaq: MGAM (US$) | 4.57 | 4.93 | 1.88 | (7.30) | 143.09 | (0.05) |
| Shuffle Master | Nasdaq: SHFL (US$) | 8.22 | 8.89 | 2.96 | (7.54) | 177.70 | (0.18) |
| Transact Technologies | Nasdaq: TACT (US$) | 7.55 | 7.25 | 2.50 | 4.14 | 202.00 | 0.02 |
| Wells-Gardner Electronics | AMEX: WGA (US$) | 2.48 | 2.49 | 0.53 | (0.40) | 367.92 | (0.00) |
| WMS Industries | NYSE: WMS (US$) | 37.93 | 37.08 | 18.13 | 2.29 | 109.21 | 0.27 |
| Change in Index Value | (0.60) | ||||||
| AGEM: January 2010 | 102.88 | ||||||
| AGEM: February 2010 | 102.28 | ||||||
ANALYSIS PROVIDED BY UNION GAMING GROUP
Gaming activity at the state level was largely mixed. WYNN signed on the dotted line to take over the Foxwoods project in downtown Philadelphia; Delaware passed its table games bill as expected; a bill to expand gaming at six locations (15,000 slots) in New Hampshire was filed; Minnesota is looking at approving slots at the two Twin Cities race tracks; the Kansas Lottery came to an agreement with the Chisholm Creek partners; New York finally settled on a manager for the Aqueduct license with a potential opening date early next year; and a new casino ballot measure was approved in Maine that voters will decide on in November.
On the other hand, a gaming bill was filed in Hawaii but was immediately shot down; and Kentucky seems to have declined to look at gaming expansion during 2010. At the international level, IGT decided to exit its Japanese pachislot business which had been a drag on earnings in recent years.
While casino operators expressed caution with respect to trends in Las Vegas, which investors' extrapolated to mean minimal capex budgets for new slot machines, we continue to see improvements across most measureable metrics in Las Vegas: visitation has posted positive growth for four consecutive months, gaming revenues have increased (largely on the strength of baccarat) and our sources have indicated to us that Chinese New Year was very strong.
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, 90 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, Lightning Gaming, Lucky Line Ltd., MCA Processing, Modern Gaming, Rocket Gaming Systems, Summit Gaming and Winning Asia Technology. AGEM Associate Members: Casino Enterprise Management, Ceronix, CMYK Creative, Cole Kepro International, Cybertec Gaming Systems, Diamond Casino Products, DynaGraphic Printing, Elite Casino Products, Esterline Advanced Input Systems, FutureLogic, Gaming Capital Group, Gaming Partners International, Gary Platt Manufacturing, Global Cash Access, Global Gaming Group (G3), Grand Products, Heber Ltd., Howard & Howard, IdeaWork Studios, IDX, Intel, IPS, James Industries, KEY-BAK, Kreller Group, KSK, Lewis & Roca, Masterpiece Advertising, MC2, Money Controls, Nanoptix, Paokai Electronic Enterprise Co., Proforma GPS, Quixant Ltd., Regulatory Management Counselors, Sanmina-SCI, SCA Gaming, 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.
Disclaimer
Data and information contained herein is provided for informational purposes only, and is not intended for investment, company evaluation or other decision-based purposes. This analysis is based on selected economic data from a wide range of economic data and statistics and is not intended to be a comprehensive overview of all economic factors. Neither Association of Gaming Equipment Manufacturers, its members, partners, principals or employees, nor any of its data or content providers shall be liable for any errors in the content, or for any actions taken in reliance thereon. By reviewing this data, a user agrees not to redistribute the information found therein. AGEM shall not be liable for any actions taken in reliance thereon.
Contact Information:
Contact for AGEM release:
Marcus Prater
AGEM Executive Director
(702) 812-6932