GGRAsia – Everi posts all-time quarterly record net income in 1Q

Everi posts all-time quarterly record net income in 1Q

May 06, 2021 Newsdesk Industry Talk, Latest News, Top of the deck

Casino equipment maker and financial technology (fintech) supplier Everi Holdings Inc posted first-quarter net income of just over US$20.5 million, compared to a net loss of nearly US$13.5 million in the prior-year quarter. The figure was also an improvement compared with business performance prior to the Covid-19 pandemic: the company had net income of US$5.9 million in the first three months of 2019.

The results for the January to March 2021 period “are a quarterly sequential improvement from the 2020 fourth quarter, and reflect the ongoing but reduced impact from the Covid-19 pandemic, as well as strong casino patron demand,” the firm stated in a Wednesday release.

Revenues for the January to March 2021 period “rose to a first-quarter record”, said the firm, reaching US$139.1 million compared to US$123.8 million in the 2019 first quarter, and US$113.3 million in the first three months of 2020.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased to US$75.4 million from US$52.3 million in the 2020 first quarter, the firm said. Everi’s adjusted EBITDA had been US$61.3 million in the 2019 first quarter.

Everi’s free cash flow was positive US$43.5 million for the first three months of 2021, compared to US$21.2 million in the 2019 first quarter.

“We are off to a strong start in 2021 with first quarter record revenue and all-time quarterly record net income,” said Michael Rumbolz, the group’s chief executive, in prepared remarks accompanying Monday’s earnings release.

The company did not provide detailed data for its performance in Asia.

“A key driver of the growth in our games and fintech business segments is our high-margin, recurring revenue streams,” Mr Rumbolz added. “Our strong start to 2021, which has continued into the second quarter, is a great indication that we are already regaining our pre-pandemic momentum, including our expectation that 2021 full year results will exceed the levels achieved in 2019.”

Everi announced last month that Mr Rumbolz was to become company chairman, in addition to his role as chief executive, due to the pending retirement of the present chairman, Miles Kilburn.

Mr Kilburn will retire at the group’s annual general meeting, on May 19.