GGRAsia – Everi 3Q profit triples on higher revenue, lower costs

Everi 3Q profit triples on higher revenue, lower costs

Nov 06, 2019 Newsdesk Industry Talk, Latest News

Everi Holdings Inc, a United States-based specialist in cash handling technology and electronic game content for the casino industry, reported net income of US$9.3 million for the third quarter of 2019, compared with US$2.1 million a year earlier. The company said the “record” quarterly financial results were boosted by an increase in total revenue, and a decline in costs and expenses.

Aggregate revenues for the three months to September 30 increased 11.9 percent year-on-year to approximately US$134.6 million, the firm said in a Tuesday filing to the New York Stock Exchange.

Games segment revenue was US$69.3 million for the third quarter of 2019, up 5.3 percent from the prior-year period. The fintech division reported revenue of US$65.3 million, an increase of 19.8 percent from the comparable period in 2018.

The company reported overall operating income of US$27.3 million for the three months to September 30, 27.0 percent higher compared to US$21.5 million a year earlier.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the reporting period increased by US$6.4 million – or 11.0 percent year-on-year – to US$64.7 million.

Commenting on the firm’s third-quarter performance, Michael Rumbolz, president and chief executive of Everi, said in a prepared statement: “Our record quarterly financial results can be directly attributed to the value of our product development initiatives and the operating strategies we adopted.”

In the games segment, Everi said it sold a total of 1,040 gaming units during the reporting period, a decrease of 10.7 percent from the year-ago period. The average sales price however went up by 5.8 percent to US$17,983.

The sale of gaming units and other related parts and equipment generated revenues of US$19.6 million in the third quarter of 2019 compared to US$21.1 million in the prior-year period.

Revenues from gaming operations increased approximately 11.4 percent year-on-year, to what the company said was a “record” US$48.5 million.

Mr. Rumbolz highlighted in his prepared comments what he said was “the favourable customer reaction” to the firm’s newest games and fintech products at Global Gaming Expo, a trade show that took place last month at Las Vegas, Nevada, in the United States. “For our games segment, our broad offering of new products across the spectrum of premium mechanical, premium video, standard mechanical, standard video and wide-area progressive games, including the extensive depth of new game content, were very favourably received by customers.”

On Tuesday, Everi also announced the appointment of Atul Bali to the company’s board of directors with effect from November 4. His appointment expanded the size of the board to eight members.

Mr Bali is currently non-executive chairman of Meridian Tech Holdings Ltd, a regulated global emerging markets sports betting and online gaming firm, operating in Europe, Latin America, and Africa. He is also an investor in, and advisor to, a range of privately held lottery, gaming and fintech businesses, according to Everi.