The AGEM Index started the year on a positive note with an 8.8-percent increase from December 2012. The composite index was 147.66 by the close of January 2013, representing an increase of 11.93 points from the prior month. January marks the third consecutive month in which the index reported an increase from the prior period. The latest performance is attributable to 15 of the 17 global gaming manufacturers reporting month-over-month increases in stock price. Global Cash Access (GCA) and Konami (KNM) were the only companies to report declines.
The broader stock markets also started off the year well. NASDAQ ended January at 3,142.13, up 4.1 percent from the end of December. The S&P 500 fared slightly better, increasing 5.0 percent month-to-month to 1,498.11. Meanwhile, the Dow Jones Industrial Average reported the greatest increase of the three. The market ended the month at 13,860.58, representing a 5.8-percent increase from the end of December. A temporary solution to the pending fiscal cliff at year-end helped to boost valuations across the board.
Selected positive contributors to the January 2013 AGEM Index included the following:
- WMS Industries (WMS) reported a stock price of $24.75, up 41.4 percent, and contributed 3.51 points as a result of its announced buy-out by Scientific Games.
- Lottomatica (LTO) contributed 2.59 points, due to its 5.8-percent increase in stock price to EUR 18.20.
- Aristocrat Technologies (ALL) reported a 17.8-percent increase in stock price to AUD$3.71 and contributed 2.24 points to the index.
- Selected negative contributors included the following:
- Konami (KNM) contributed negative 1.15 points, due to a 6.1-percent decline in stock price to $21.06.
- With a stock price of $7.55, down 3.7 percent, Global Cash Access (GCA) contributed negative 0.12 points.
The gaming market in Macau is continuing to grow. In 2012, revenues reached a record $38 billion, up 14 percent from the prior year. In 2013, analysts are projecting a growth rate of 11 to 13 percent. In addition, the market is expected to be positively impacted by the completion of a light-rail system that will connect Macau to interior China and attract more visitors to the casinos. With strong market position and outlook for Macau, operators continue to seek out opportunities to increase their presence in the region, a trend that bodes well for gaming equipment suppliers.
Las Vegas Sands completed Sands Cotai Central's Earth Tower at the end of January, adding 2,067 rooms to the resort and bringing the total to 3,896. Now that the resort is fully operational, it will be granted an additional 200 tables, bringing the total to 400. Las Vegas Sands is one of two properties that will be granted additional tables this year. Another 50 will be installed at Galaxy Macau.