Feb 29, 2024 Newsdesk Industry Talk, Latest News  
Casino equipment maker and financial technology (fintech) supplier Everi Holdings Inc posted fourth-quarter net income of US$1.9 million, on revenue that fell 6.5 percent year-on-year, to US$192.0 million, according to a Thursday press release.
The group’s 2023 fourth-quarter net income was down 93.0 percent year-on-year.
The company said the result was, among other factors, impacted by “US$11.7 million in impairment costs related to certain intangible assets associated with the acquisition” of gaming software developr Intuicode Gaming Corp, as well as “US$4.3 million for office and warehouse consolidation costs”.
On Thursday, in a separate update, Everi announced a “strategic merger” with the gaming and digital businesses of International Game Technology Plc.
Everi’s adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at US$82.2 million in the final quarter of 2023, down 12.0 percent from the prior-year quarter.
Revenue in the games segment – including gaming operations and equipment and system sales – was US$97.1 million in the three months to December 31, down 14.2 percent from a year earlier.
The decrease “was a result of declines in both gaming operations and gaming equipment and systems revenues, reflecting near-term headwinds while transitioning to a new family of cabinets and roll-out of new content,” stated the firm.
In October, Everi said it would have a “full cabinet refresh” by early 2024, with the new cabinets debuting alongside the group’s “most diverse-ever portfolio of new content,” featuring more than 70 new themes across all product categories.
The number of gaming machine units sold stood at 1,043 in the fourth quarter of 2023, compared to 1,944 a year earlier. Regarding gaming operations, Everi’s installed base declined to 17,512 units as of December 31, compared to 17,975 in fourth-quarter 2022.
Randy Taylor, Everi’s chief executive, said in prepared remarks that 2023 “was a transitional year” for the group’s gaming business, including “the introduction of four new cabinets and new content”.
He added: “We generated strong free cash flow of US$141.9 million [for full-year 2023], after investing US$67.6 million in research and development and US$145.1 million in capital investments and returning US$100 million to shareholders through share repurchases.”
For full-year 2023, Everi reported net income of US$84.0 million, down from US$120.5 million in the prior year. Revenue rose by 3.2 percent year-on-year, to US$807.8 million.
Group-wide full-year adjusted EBITDA stood at US$367.0 million, compated to US$374.1 million in 2022.
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