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Everi revenue up in Q4 and FY, despite rising costs

News

Everi recorded revenue of $782.5m (£648.6m/€732.2m) for its full year 2022 results, a period where the business saw record quarterly revenues and made a number of key acquisitions.

Full-year revenue was up by 18.4% year-on-year.

For the fourth quarter, revenue was $205.3m – 13.8% higher than in Q4 2021.

This is yet another quarterly record for Everi, beating out the previous record of $204.3m in Q3. Record revenues were also achieved in Everi’s first and second quarters of the year.

Randy Taylor, CEO of Everi, said that focus on the company’s “operating priorities” allowed it to thrive during the quarter.

“Everi ended 2022 with another quarter of strong performance, including record fourth quarter revenue and adjusted EBITDA, which extended our record of successful execution on our operating priorities,” said Taylor.

“Our ongoing investments in new product development and acquisitions helped grow our product portfolio and addressable markets and are a key driver of our operating success that resulted in an 18% revenue increase, an 8% rise in adjusted EBITDA and a record $186.7m in free cash flow for the 2022 full year.”

In the first quarter, Everi acquired payments solution provider Ecash and acquired assets from Atlas Gaming Technologies.

Later in the year, it acquired machine supplier Intuicode Gaming and certain strategic assets” of engagement platform Venuetize.

Full-year results

Everi generates revenue from two main sources – games and fintech.

For its games division, revenue was $436.4m in total, up by 15.8% yearly. Fintech revenue made up the remaining $346.0m, a rise of 22.0%.

Turning to expenses, Everi’s games division generated $111.7m in costs, up by 36.7%, while fintech costs grew from $33.6m to $53.5m.

Operating expenses hit $216.9m for the year, an increase of 14.8%. Research and development costs at $60.5m, along with depreciation and amortization costs at $66.8m and $59.5m respectively, made up the remaining costs.

The total expenses for the year came to $569.1m, a rise of 23.0%. This left the operating income at $213.3m for the year.

Following other expenses at $55.7m – consisting of interest expense and loss of extinguishment of debt – the total before income tax was $157.6m.

After considering income tax provision at $37.1m, the total net income for the year was $120.4m.

Fourth quarter

Everi’s games division generated the highest revenue for the fourth quarter of the year, at $113.2m. Meanwhile, fintech contributed the remaining $92.1m.

Cost of revenues for games and fintech were $30.3m and $16.0m respectively.

Operating expenses for the quarter were $55.7m, largely stable when compared to $55.5m in Q4 2021.

Research and development costs were $17.1m, while depreciation and amortization costs were $18.4m and $15.9m respectively.

Following the total expenses for the quarter at $153.7m, the total operating income was $51.5m – a rise of 7.8% year-on-year.

After considering interest expense net of interest income at $17.2m, and income tax provision at $7.3m, the net income for the quarter was $27.0m – a significant fall of 69.7% yearly.