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Record gaming revenue drives growth at Everi in Q3


Casino and financial technology business Everi Holdings revealed a record performance by its gaming business during the third quarter of its 2021 financial year helped drive group revenue up 49.7%.

Total revenue for the three months through to the end of September amounted to $168.3m (£123.2m/€145.2m), up from $112.4m in the third quarter of 2020, during which Everi said it was significantly impacted by the novel coronavirus (Covid-19) pandemic.

Breaking down this performance, Everi said its gaming business was the primary source of revenue in Q3, with revenue from this segment climbing 67.5% year-on-year to a record $95.8m.

Breaking down the gaming revenue further, game operations revenue was 52.3% higher at $71.6m, while game equipment and systems revenue also increased by 137.3% year-on-year to $24.2m.

Everi also saw revenue from its financial technology solutions segment increase 31.9% from $54.9m in Q3 of 2020 to $72.4m this year. Within this segment, financial access services revenue hiked 36.5% to $46.4m, while software and other revenue was up 16.4% to $17.0mn and hardware revenue 45.2% to $9.0m.

Everi also noted that event after the end of the quarter could help support further growth in Q4 and beyond. These included the acquisition of certain strategic assets of Meter Image Capturing, a provider of progressive meter reporting solutions to the gambling sector, as well as the launch of its online gaming services in Connecticut.

Turning to costs for the third quarter, total operating expenses amounted to $113.2m, up 22.5% from $92.4m last year, while Everi’s other expenses – including $34.4m on the extinguishment of debt and $14.3m in interest costs – reached $48.6m.

However, despite higher spending in the quarter, such was the impact of revenue growth that pre-tax profit rocketed 671.6% from $833,000 to $6.4m, while adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was 51.5% higher at $90.6m.

Everi also received $319,000 in tax benefits in Q3, but after taking into account a $442,000 loss from foreign currency translation, this left a net profit of $6.3m, compared to a loss of $519,000 last year.

“The growth in our third quarter revenue, operating earnings and free cash flow demonstrate the substantial ongoing momentum in our financial performance,” Everi chief executive Michael Rumbolz said. “We expect that further growth across both our games and FinTech segments will continue for the remainder of this year and into 2022 and beyond.

“We expect to continue to benefit from the expansion of our installed base of leased gaming units, growth in ship share, same-store increases in financial access transactions, and the ongoing organic growth of our loyalty and regulatory compliance solutions.”

Looking at year-to-date performance, group revenue in the nine months through to the end of September was 81.0% higher at $478.0m. Games revenue hiked 100.4% to $271.4m, while FinTech revenue also jumped 62.3% to $208.7m.

Operating costs were 15.2% up at $330.3m and other costs climbed 33.3% to $84.9m, but adjusted EBTIDA was 124.1% higher at $258.4m and pre-tax profit reached $64.8m, up from an $86.2m loss in 2020.

After accounting for $1.3m in tax payments and a foreign currency translation loss of $335,000, this left a net profit of $63.2m, compared to an $84.1m loss last year.

Growth in Q3 also led Everi to increase its guidance for the full year. Net profit is now set to reach between $98.0m and $100.0m and an adjusted EBITDA range of $342.0m to $346.0m. This was up from updated guidance issued last month.