Everi Holdings Inc reported revenue of US$206.6 million for the third quarter, up 1.1 percent from the prior-year period. Operating income of US$52.4 million declined 4.0 percent year-on-year, “as a result of higher operating expense and depreciation reflecting higher labour costs and costs associated with recent acquisitions,” stated the company in a Wednesday press release.
Net income for the reporting period decreased to US$26.6 million, compared to US$29.4 million in the prior-year period. “Higher interest expense and lower operating income, partially offset by a lower tax provision, drove a decline in net income” for the three months to September 30.
Everi is a provider of gaming equipment and products to the land-based and online casino sectors, and also supplies fintech and player-management technology.
Group-wide adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) were flat in year-on-year terms, at US$96.2 million.
Revenue from gaming operations, equipment and systems stood at US$111.5 million, down 0.9 percent from a year earlier. The decline reflected a “12 percent decrease in revenues from gaming equipment and systems sales, offset by a 5 percent increase in gaming operations revenues.”
Operating income in the games segment was US$21.4 million, compared to US$25.8 million in the third quarter of 2022, “reflecting higher operating expenses primarily due to higher labour costs, as well as increased depreciation and amortisation associated with acquisitions,” stated the firm.
Segmental adjusted EBITDA was US$56.5 million in the third quarter, versus US$57.2 million a year ago.
Revenues generated from the sale of gaming machines and other related parts and equipment declined to US$33.1 million in the quarter to September, compared to US$37.5 million in the prior-year period.
Everi said it sold 1,449 gaming machines at an average selling price of US$19,485 in the third quarter, compared with 1,841 units sold at an average of US$18,496 in the prior-year period.
Randy Taylor, Everi chief executive, was cited as saying in the announcement: “Our third quarter results reflected the near-term headwinds in our games segment including the impact from lower unit sales and lower daily win per unit.”
“Despite these challenges, we continue to generate strong free cash flow which totalled US$122.1 million for the first nine months of the year,” he added. “This level of free cash flow has allowed us to aggressively return capital to our shareholders as reflected in our US$74 million of share repurchases so far in 2023, and to continually reinvest in our product portfolio.
Mr Taylor said the company was introducing its “next generation of for-sale and for-lease cabinets, supported by more than 80 new game themes”. Such effort represented “the most diverse range of gaming content in the company’s history, including an increased emphasis on the video reel segment,” he stated.
Everi said last month it will have a “full cabinet refresh” by early 2024. The company said the five new cabinets would debut alongside its “most diverse-ever portfolio of new content,” featuring more than 70 new themes across all the group’s product categories.
Dec 01, 2023Fresh event space in casino resorts is welcomed by Macau’s meetings, incentives, conferences and exhibitions (MICE) sector, but visitors’ reception on arrival in the city, high hotel prices, and...
Dec 01, 2023
”We committed to the government to provide a full business idea and plan for Phase 1b around 12 months after the casino opens, therefore, probably early 2025”
President of the Mohegan Inspire Entertainment Resort in South Korea