GGRAsia – Gaming, fintech drives Everi to record 1Q results

Gaming, fintech drives Everi to record 1Q results

May 11, 2022 Newsdesk Industry Talk, Latest News

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.