GGRAsia – Strong 3Q gaming sales help Everi hit record quarterly rev

Strong 3Q gaming sales help Everi hit record quarterly rev

Nov 09, 2022 Newsdesk Industry Talk, Latest News, Top of the deck

Casino equipment maker and financial technology (fintech) supplier Everi Holdings Inc posted third-quarter net income of US$29.4 million, compared to a net profit of nearly US$6.7 million in the prior-year period. The company said in a Tuesday press release it had record quarterly revenue, at US$204.3 million, up 21.4 percent year-on-year.

Revenue in the games segment – including gaming operations and equipment and system sales – was US$112.5 million in the three months ended September 30, an increase of 17.4 percent from a year earlier. The number of gaming machine units sold rose 56.5 percent year-on-year in the quarter, to 1,841.

“The company estimates its quarterly industry ship share expanded year over year, primarily driven by sales of the newly launched ‘Player Classic Signature’ mechanical reel cabinet, ongoing sales of the ‘Player Classic’ mechanical reel cabinet, and demand for the expanding game library supporting the ‘Empire Flex’ video reel cabinet”, said Everi.

Fintech segment revenue for the third quarter was US$91.8 million, compared to US$72.4 million a year earlier.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at US$96.6 million in the July to September period, a quarterly record for Everi and up 6.6 percent from the prior-year quarter.

“The third quarter year-over-year increases in revenues, net income and adjusted EBITDA and our consistent improvement in our financial results throughout 2022 reflect the operating momentum across each of our businesses due to the continued broad-based demand for our products,” said Randy Taylor, the group’s chief executive, in prepared remarks accompanying Tuesday’s earnings release.

He added: “Our strong financial results this year have been driven by steady growth in our recurring revenue streams together with a record level of revenues from gaming machine and fintech hardware sales.”

Everi reported free cash flow of US$43.9 million for the third quarter of 2022, down 22.0 percent from a year ago. The decline was “partly due to a change in the timing of the US$10.0 million semi-annual interest payment on the company’s 5-percent senior unsecured notes”, said Everi.

On Tuesday, the firm tightened its full-year 2022 guidance for net income to a range from US$112 million to US$117 million. Full-year adjusted EBITDA is now expected at between US$371 million to US$376 million.