If you’re thinking of investing in gambling stocks anytime soon, it is a good idea to keep an eye on gambling machine manufacturers. Now is a great time for buy in on companies in the casino equipment supply sector as the Association of Gaming Equipment Manufacturers has announced great gains over the course of the past month. At the end of July, the composite index reached 423.92 points.
This marks an increase of 1.97 points or 0.5%, which continues the upward trend that started in December of last year. It also means a year-on-year increase for the 22nd month in a row, with a 42.9% rise since July 2016. It seems that Scientific Games is responsible for most of this success in over the course of the past month.
Only half of the companies in the AGEM reported a month-on-month increase in stock price, with Scientific Games seeing a 40.3% jump since June 2017. This is largely due to reports than Scientific Games (which houses WMS, Platech an saw a significant increase in revenue from $729 million to $766 million over the course of just one year.
Analysts only forecasted revenue of $733 million, so the company far exceeded expectations with significant increases in its sales of gaming machines, gaming systems, table games and interactive gaming. Things will only get better for Scientific Games, as the company has recently started further expansion into the mobile gaming market.
In July, Scientific Games announced its acquisition of Red7Mobile, a mobile and desktop casino games developer, which will certainly benefit existing customers and help to boost its overall business in all sectors.
“As we merge Red7's content into our extensive game library, we will expand our UK retail and digital portfolio and be able to deliver even more compelling game content for the global digital Real Money Gaming business,” says Barry Cottle, Chief Executive of Scientific Games Group. Another success story comes from Ainsworth, which was the second biggest earner. Its month-on-month stock prize increased by 11.6% in July.
The company has continued its foray into the North American gambling market, with a sponsorship in Washington that will allow Ainsworth to operate slots in the state. With international expansion on the horizon, it is predicted that Ainsworth’s stock will continue to increase.