GGRAsia – Everi US$27mln profit in 4Q, revenue up 14pct y-o-y

Everi US$27mln profit in 4Q, revenue up 14pct y-o-y

Mar 02, 2023 Newsdesk Industry Talk, Latest News

Casino equipment maker and financial technology (fintech) supplier Everi Holdings Inc posted fourth-quarter net income of US$27.0 million, on revenue that rose by 13.9 percent year-on-year, to US$205.4 million. The company said in a Wednesday press release the result represented “record” quarterly revenue.

The group’s 2022 fourth-quarter net profit was down 69.8 percent year-on-year, as the prior-year period included “a US$63.5 million non-cash tax benefit related to the reversal of a valuation allowance on certain deferred tax assets,” said the firm.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at US$93.4 million in the final quarter of 2022, up 5.2 percent from the prior-year quarter.

Revenue in the games segment – including gaming operations and equipment and system sales – was US$113.2 million in the three months to December 31, an increase of 7.4 percent from a year earlier. The number of gaming machine units sold rose 1.8 percent year-on-year in the quarter, to 1,944.

The company said growth in revenue in the games segment reflected “a 12-percent increase in revenues from gaming machine sales and a 5-percent increase in gaming operations revenues, including digital gaming operations.”

Everi’s installed base expanded to 17,975 units as of December 31, 2022, a 6.3-percent increase year-on-year, and up by 240 units on a quarterly sequential basis.

“Everi ended 2022 with another quarter of strong performance, including record fourth-quarter revenue and adjusted EBITDA, which extended our record of successful execution on our operating priorities,” said Randy Taylor, the group’s chief executive, in prepared remarks accompanying Wednesday’s earnings release.

For full-year 2022, Everi reported net income of nearly US$120.5 million, on revenue that was up 18.5 percent year-on-year, to US$782.5 million. It reflected a 15.8-percent increase in games segment revenues, and a 22.0-percent growth in fintech segment revenues.

Group-wide full-year adjusted EBITDA stood at US$374.1 million, 7.7-percent higher than in 2021. Free cash flow “was an all-time record” of US$186.7 million, and up 17.6 percent from 2021, stated the company.

In a separate release on Tuesday, Everi announced it would “consolidate and streamline” its production facilities.

The firm said it had begun construction of a new facility in Las Vegas, Nevada, in the United States, that once completed would consolidate the manufacturing, assembly and distribution of the group’s gaming machines, with its assembly of cash access kiosks, loyalty kiosks and other financial technology products.

Everi said it anticipated the consolidation process would “streamline production and simplify supply-chain processes and the distribution of completed products to customers”.

The company stated it expected to record approximately US$4.5 million in expenses in 2023 related to “planned closure and exit costs, relocation, employee retention, and other associated costs for transition of production to the new facility”.