GGRAsia – Everi’s 2Q net loss narrows on higher sales

Everi’s 2Q net loss narrows on higher sales

Aug 10, 2016 Newsdesk Latest News, Top of the deck, World

U.S.-based Everi Holdings Inc on Tuesday reported a net loss of US$10.8 million for the second quarter of 2016, compared to a loss of US$12.7 million in the prior-year period. The group declared a net loss per diluted share of US$0.16 for the period, compared to a net loss per diluted share of US$0.19 in the second quarter of 2015.

Everi is a specialist in cash handling technology and electronic game content for the casino industry. On Tuesday, the company said its revenues for the three months to June 30 increased 3.7 percent year-on-year, to US$214 million.

The firm reported operating income of US$6.1 million for the April to June period, down 62.6 percent from the year-earlier period. Operating income for the three months ended June 30 included a US$4.3 million write-down and a US$0.9 million loss related to the sale of an aircraft acquired in late 2015, said the company.

Everi reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$51.2 million; flat compared to the second quarter of 2015.

Second quarter 2016 revenues included US$54.3 million from the games segment and US$159.7 million from the payments segment.

Revenue from electronic game sales was US$15.5 million for the second quarter of 2016, compared to US$13.5 million in the prior-year period, driven by the sale of 819 units in the three months to June 30, compared to 744 units in the second quarter of 2015.

The installed base at the end of the second quarter of 2016 was 13,179 units, an additional 222 units on a sequential basis, said the firm.

Everi said that sales of the company’s new Core HDX gaming cabinet represented approximately 57 percent of the second quarter unit sales.

“Our second quarter financial results, including quarterly sequential growth in adjusted EBITDA for both our games and payments segments, are in line with our previous expectations,” said Michael Rumbolz, Everi’s president and chief executive, in a statement.

“The high level of interest in our new Core HDX cabinet is beginning to translate into unit sales as well as placements within our installed base,” he said.

Mr Rumbolz, who took over as CEO in February, added that Everi is increasing its product library and enhancing its games with new features.

“We have begun to develop new games based on licensed content… We also recently entered into a new partnership for the distribution of our content into new channels, such as interactive gaming,” he said.

In December 2014, Everi – then known as Global Cash Access Holdings Inc – completed the US$1.2-billion acquisition of Multimedia Games Holdings Co Inc by way of merger.