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Gaming supplier industry sees 6 pct y-o-y uptick

The global gaming supplier industry generated a total of US$18 billion in economic output directly last year, a figure that expanded to nearly US$48 billion when taking into account ripple effects, according to the 2017 Industry Impact Analysis by the Association of Gaming Equipment Manufacturers (AGEM).
When compared to the previous year this marks a 6.2 per cent year-on-year increase. Growth was also seen in the areas of employment and salaries, as the industry directly employed about 55,000 during the year and saw a 5.6 per cent increase year-on-year in the 212,000 plus employees after taking into account the ‘multiplier effect’. This worked out to ‘nearly US$5 billion’ (MOP40.1 billion) in direct wages to employees and ‘over US$14 billion in total earnings within the economy in 2016’.
‘The economic impacts sourced to the industry demonstrate the meaningful contributions businesses operating in this market space make in the communities in which they do business,’ notes the report.
According to information from the local Gaming Co-ordination and Inspection Bureau (DICJ), in the first quarter of this year the total number of slot machines in the MSAR amounted to 16,018. The sum of revenue from both slot machines (MOP3.24 billion) and Live Multi Game (LMG) machines (MOP580 million), amounted to MOP3.82 billion.
Of the total worldwide global gaming supplier industry, the report notes that revenue to the industry reached US$17.9 billion, a 6.3 per cent year-on-year increase, while indirect output was US$14.9 billion.
When queried, the members of the AGEM noted that with regards to sales one third of respondents noted that less than 10 per cent of their purchases had been made locally, while 44.4 per cent of respondents had made 26 per cent to 75 per cent of their sales locally. This dropped to 14.8 per cent of respondents for sales of 75 per cent or more.
With regard to the coming sixth months, the report notes that expectations from respondents fall mostly into the ‘improve slightly’ category, at 57.1 per cent, with a further 10.7 per cent expressing their prediction for conditions to ‘improve significantly’. Overall, 28.6 per cent of respondents believe the economic conditions will ‘stay about the same’, with only 3.6 per cent worried that conditions will worsen.
About 93 per cent expect demand for their products or services to improve over the next 12 months, with 57.1 per cent expecting it to ‘improve slightly’. Only 3.6 per cent expect the demand to worsen.
Gross revenues for the respondent companies last year saw 87 per cent making over US$1 million and 34.8 per cent seeing revenues above US$100 million, with 13 per cent making over US$500 million. In total 77.3 per cent of the companies saw gross revenue increase during the year, while 9 per cent saw a decrease.