Casino equipment maker and financial technology (fintech) supplier Everi Holdings Inc posted first-quarter net income of just over US$31.5 million, compared to a net profit of nearly US$20.5 million in the prior-year period. The company reported the highest-ever revenue for a reporting first quarter, at US$175.6 million, up 26.2 percent year-on-year, according to a Tuesday press release.
The company cited strength across the gaming and fintech business segments as the reason for the “momentum” in its financial performance. “Games and fintech segments generated highest-ever quarterly recurring revenues,” stated the firm.
The firm’s recurring revenues grew by 23 percent year-on-year, to US$134.4 million in the first three months of 2022, while non-recurring sales increased by 38 percent to US$41.2 million.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at US$89.6 million in the three months to March 31, up 18.8 percent from the prior-year quarter.
“We delivered record first-quarter financial results, including revenues, net income, adjusted EBITDA, and free cash flow. Our performance was a strong start to the year,” said Randy Taylor, the group’s chief executive, in prepared remarks accompanying Tuesday’s earnings release.
He added: “The improved operating results, led by growth in our high-margin recurring revenue streams … are translating into sustainable free cash flow. This enables us to continue prioritising return-focused investments that will grow our addressable markets, further support our internal product innovation and pursue additional accretive, scalable acquisitions.”
Everi reported free cash flow of US$51.6 million for the first three months of 2022, up 18.6 percent from a year ago.
Revenues in the gaming segment – including gaming operations and equipment sales – were US$98.3 million in the first three months of 2022, an increase of 29.2 percent from a year earlier. The number of gaming machine units sold rose 56.3 percent year-on-year in the quarter, to 1,474.
Everi expanded its presence in the first quarter with the acquisitions of an Australia-based fintech technology provider and a games development team, that the firm says “will form the nucleus of a new game studio in Australia.”
On Tuesday, the company raised its guidance for full-year 2022 adjusted EBITDA to a range of US$368 million to US$378 million.
