Casino and financial technology company Everi posted a comprehensive profit of $56.9m for the first half of its 2021 financial year after seeing revenue more than double during the period.
Total revenue for the six months through to August 30 amounted to $311.7m, up 105.1% on the $152.0m posted in the first half of last year.
Everi’s games business proved to be the primary source of income, with revenue here rising 124.7% to $175.5m. Some $131.4m of this total came from gaming operations, with the remaining $44.1m generated through gaming equipment and systems activities.
In terms of its fintech business, revenue here increased 84.3% to $136.2m. Everi said that $83.6m of this total came from financial access services, with $32.9m from software and other and the remaining $19.8m from hardware.
Turning to costs, overall spending in the half amounted to $217.1m, up 11.7% from last year, though other expenses edged down 19.2% to $36.2m.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rocketed by 201.8% to $167.8m, while pre-tax profit reached $58.4m, compared to an $87.1m last year.
Everi paid $1.6m in tax and after also accounting for a foreign currency translation benefit of $107,000, it ended the half with a net profit of $56.9m, up from a loss of $83.6m in 2020.
Looking at the second quarter of 2020, revenue rocketed by 349.5% to $172.6m, which was a new quarterly record for the business and in line with initial forecasts published in June.
Games revenue increased by 333.6% to $99.3m, with gaming operations revenue at $73.2m, gaming equipment and systems revenue reaching $26,1m and other gaming revenue $27,000.
In terms of Fintech, revenue here also jumped by 308.9% to $73.2m, with financial access services revenue at $44.8m, software and other revenue $15.6m and hardware revenue $12.8m.
Total costs and expenses were 29.3% higher at $118.2m, but other costs were down 10.6% to $17.8m. Couple with the revenue growth, this meant adjusted EBITDA shot up 2,703.0% to $92.5m, while profit before tax reached $36.6m, compared to a $72.6m loss last year.
Everi paid $415,000 in tax but benefitted from $328,000 in foreign currency changes, which meant it ended the quarter with a $36.5m net profit, compared to a $68.2m loss in 2020.
“The record 2021 second quarter results reflect the substantial benefit of our execution of our ongoing growth initiatives, as well as improvement in industry trends,” Everi chief executive Michael Rumbolz said.
“The strong momentum to-date this year in revenues, earnings and cash flow is being driven by consistent improvements in our games and FinTech segment operating performance, demonstrating yet again the substantial demand that exists for our high-value products.
“A key highlight of our significant growth compared to pre-pandemic periods is the strength of our recurring revenue streams, which comprise an increased percentage of our overall business mix. This revenue is a significant contributor to our growing free cash flow, which in turn has allowed us to dramatically lower our net leverage.
“Accordingly, we are favorably positioned to prudently invest in both internal product innovation and complementary, high-return, accretive acquisitions that will support our future growth.”