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Everi returns to profit as revenue reaches record $139.1m in first quarter


Gaming and financial technology business Everi Holdings said record revenue of $139.1m in the first quarter of its financial year helped it return to profit during the period.

Consolidated revenue for the three months to March 31 was 33.0% up from $113.3m in the first quarter of last year, during which Everi was heavily impacted by the novel coronavirus (Covid-19).

For longer-term reference, Everi also provided comparisons between Q1 of the current year and in 2019, before the pandemic. Revenue was up 12.4% from $123.8m in Q1 of 2019.

Gaming revenue in Q1 of this year amounted to $76.1m, which was up 32.1% year-on-year. Gaming operations accounted for $58.1m of overall gaming revenue, a record for the sub-segment, with $2.4m attributed to digital.

The other $18.0m in gaming revenue came from gaming equipment and systems, with Everi having sold 943 units during the opening quarter of the year.

Revenue from the financial technology solutions segment reached $63.0m, up 12.5% from $56.0m in Q1 of last year. Breaking this down, $38.7m was attributed to financial access services, $17.7m to software and other sources, and $7.0m from hardware.

“Our games segment momentum continues to reflect ongoing growth in our installed base of gaming operations units, in particular the consistent increases in placements of our higher-earning premium units that are helping to drive higher daily win per unit,” Everi’s chief executive Michael Rumbolz said.

“We also believe that the ship share of our for-sale gaming units continues to expand.

“Our FinTech segment continues to benefit from our established leading share in the gaming FinTech market as well as strong demand for our newer loyalty products and services together with a high-level of interest in our cashless digital wallet solution.”

Looking at costs for the quarter and operating expenses were down 3.3% to $38.0m, which, coupled with the revenue rise, meant adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 44.2% to $75.4m.

Research and development costs were level at $8.4m, while depreciation expenses stood at $16.2m and amortisation $14.7m, resulting in an operating profit for the quarter of $40.2m, up 286.5% from $10.4m at the same point in 2020.

When including $18.5 in interest expenses, this left a $21.7m profit before tax, compared to a $14.5m loss last year. Everi paid $1.2m in tax and after also accounting for $221,000 loss from foreign currency translation, it ended the quarter with a net profit of $20.3m, a significant improvement from the $15.4m loss it posted last year.

“Importantly, our product momentum is translating into improvement in both our earnings and cash flow,” Rumbolz said. “This improvement enables us to continue to prudently invest in product innovation to sustain our growth, while also positioning Everi to return to our focus on reducing leverage.

“Our strong start to 2021, which has continued into the second quarter, is a great indication that we are already regaining our pre-pandemic momentum, including our expectation that 2021 full year results will exceed the levels achieved in 2019.”

Publication of the results comes after Everi last month revealed that E. Miles Kilburnis to retire as its chairman, with Rumbolz set to take over the role from May 19.