GGRAsia – Everi posts US$36mln 2Q profit, on ‘record’ revenue

Everi posts US$36mln 2Q profit, on ‘record’ revenue

Aug 05, 2021 Newsdesk Industry Talk, Latest News

Casino equipment maker and financial technology (fintech) supplier Everi Holdings Inc reported a net profit of US$36.2 million for the second quarter of 2021, up 76.6 percent from the previous quarter. The result compared to a net loss of US$68.5 million in the second quarter of 2020, according to a Wednesday press release.

The company said it achieved “record quarterly revenue” in the three months to June 30. Such revenue was US$172.6 million, up 346.0 percent from a year earlier, and a 24.1-percent improvement from the first quarter this year. The figure was also an improvement compared with business performance prior to the Covid-19 pandemic: the company had revenue of US$129.7 million in the second quarter of 2019.

In a press release, the group said adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased to US$92.5 million in the second quarter, from US$75.4 million in the preceding quarter. Everi’s adjusted EBITDA had been US$3.3 million in the 2020 second quarter.

Everi’s free cash flow was positive by US$39.2 million for the three months to June 30, compared to US$43.5 million in the opening quarter of 2021.

“The record 2021 second quarter results substantial benefit of our execution of our ongoing growth initiatives, as well as improvement in industry trends,” said Michael Rumbolz, the group’s chief executive, in prepared remarks accompanying Wednesday’s earnings release.

“The strong momentum to-date this year in revenues, earnings and cash flow is being driven by consistent improvements in our games and fintech segment operating performance, demonstrating yet again the substantial demand that exists for our high-value products,” he added.

Revenue in the gaming segment increased to a “quarterly record” of US$99.3 million compared to US$20.9 million in the 2020 second quarter. It was also up 43 percent on the US$69.4 million in the 2019 second quarter. Everi said the result reflected “strong gaming operations performance, as well as higher shipments of gaming machines.”

The company stated it sold 1,402 gaming machine units in the period, up from 381 units a year earlier, and from 1,270 units in the second quarter of 2019.

The release quoted Randy Taylor, Everi’s chief operating officer, as saying the gaming segment showed “continued growth” in the firm’s installed base of machines, with particular expansion via “increased placements” of the group’s “higher-earning premium units”.

“Slot machine sales increased by 49 percent sequentially from the 2021 first quarter,” and “benefitted from a larger share of shipments to new casino openings and expansions,” stated Mr Taylor.

He added: “We continue to see a high level of interest by casino operators in our cashless digital wallet solution and our iGaming slot content.”