Everi Holdings Inc, a specialist in cash handling technology and electronic game content for the casino industry, saw its net loss widen in the third quarter of 2016, on higher revenues.
Such loss was US$8.3 million, compared to a net loss of US$6.1 million in the prior-year period. Net loss per diluted share was US$0.12, compared to US$0.09 in the prior reporting period. Operating income was US$11.6 million, compared to US$14.7 million in the third quarter 2015.
All the above figures included US$300,000 of acquisition and other costs related to the merger of Everi and Everi Games Holding Inc, completed in December 2014.
Adjusted margin on earnings before interest, taxation, depreciation and amortisation (EBITDA) – on a non-U.S. GAAP (generally accepted accounting principles) basis – during the reporting period was 52 percent for the games segment and 14 percent for the payments segment.
Group revenues for the reporting period rose 6.5 percent to US$222.2 million, compared to US$208.7 million for the prior reporting period.
In the games segment, revenues increased approximately 4.1 percent to US$56.2 million in the three months to September 30 compared to US$54.0 million in the third quarter of 2015.
Revenue from electronic game sales was US$14.8 million for the third quarter of 2016, driven by the sale of 783 new gaming units. In the prior-year period, the company generated revenue of US$10.8 million from the sale of 587 new gaming units.
Sales of the company’s new Core HDX gaming cabinet represented approximately 78 percent of the unit sales in the third quarter of 2016, inclusive of 200 TournEvent slot tournament units in the Core HDX gaming cabinet, which were shipped to the Alberta Gaming and Liquor Commission in Alberta, Canada.
Michael Rumbolz, president and chief executive of Everi, said in a statement contained in the results: “Solid interest in our Core HDX games combined with our ongoing development of new game content is expected to drive year-over-year unit sales growth and modest improvements in our installed base during the fourth quarter.”
Sales of Everi’s premium-priced TournEvent slot tournament product comprised 29 percent of total units sold in the third quarter of 2016 – inclusive of the units shipped to Alberta – compared to 11 percent of total units sold in the prior-year period.
The company said revenues from gaming operations were US$41.4 million in the third quarter of 2016 compared to US$43.2 million in the prior-year period, which included US$0.2 million in revenue from the company’s electronic table games operations, which were divested in the third quarter of 2015.
In the payments segment, revenues increased approximately 7.2 percent year-on-year to US$166.0 million in the three months to September 30.
Cash advance revenues increased to approximately US$62.6 million in the reporting period, up by 5.4 percent from a year earlier. The firm said same-store revenue growth more than offset the loss of a corporate customer in the fourth quarter of 2015.
Automated teller machine (ATM) revenues increased approximately 12.8 percent year-on-year to US$85.2 million, which the firm said mainly reflected higher transaction volume “as a result of the acquisition of two ATM portfolios” in the third and fourth quarters of 2015, surcharge rate increases by the company’s casino customers and same-store transaction growth. The increases were partially offset by the loss of a corporate customer in the fourth quarter of 2015.
“The progress we achieved in this quarter includes a year-over-year increase in units sold, growth in our installed base and solid growth in our payments segment in both revenue and adjusted EBITDA,” said Mr Rumbolz
“This continued execution of our strategic priorities is positioning the company to achieve our goal of building operating momentum,” he added.
Sep 19, 2018Nowadays, millennials, people who were born in the 1980s or...
Aug 16, 2018Food and drink have been heavily marketed as part of Macau...
Jun 27, 2018Macau’s gaming law needs to be amended in order to...
Oct 23, 2018Several estimates by brokerages regarding Macau’s monthly casino gross gaming revenue (GGR) for October see a similar level or slight improvement over 2017′s year-high October data. In two...
”We need to have stability – especially in terms of legislation, so that it doesn’t change very often. We have several discussions with the authorities and they understand that stability is a must for the development of this industry”
COO for Russian operations at casino investor Summit Ascent