Everi reports record revenue and profit in Q1
Gaming and financial trading supplier Everi has reported record results across the board for its Q1 2022 results, including revenue of $175.6m (£142.4m/€166.4m).
Revenue was up by 26.2% year-on-year, from $139.1m in Q1 2021.
Gaming operations – which included both land-based casino and igaming revenue – made up $70.3m of this, up by 21%. Gaming equipment sales rose by $10m to $28m, bringing the total gaming revenue to $98.3m.
Randy Taylor, CEO of Everi, attributed the success to increased sales of Everi's gaming machines.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the gaming segment rose by 24.4% to $55.5m.
“Our games segment results benefitted from ongoing operating momentum as reflected in the twelfth consecutive quarter-end increase in our installed base of gaming operations units and a 56% year-on-year increase in sales of gaming machines to 1,474 units as we continue to grow our ship share,” said Taylor.
Everi's financial technology solutions segment made up the remaining $77.3m, an increase of 22.6% year-on-year. Financial access services generated most of this – $49.9m, up by 28.9%. Software revenue came to $17.9m, while hardware revenue came to $9.5m.
Adjusted EBITDA for financial technology was $34.1m, up by 3.3%.
“For the second consecutive quarter, our financial technology segment generated record revenues and adjusted EBITDA,” continued Taylor.
“The record quarterly performance was driven by increased revenues from financial access services, strong quarterly kiosk sales and the ongoing organic growth of our loyalty and regulatory technology solutions.”
Total expenses for the quarter came to $123m, up by 24.3% year-on-year.
Costs of revenues for the games segment accounted for $22.7m of this, a rise of 51.1%, while costs in the financial technology segment rose by 39.1% to $9m.
Other costs, including research and development expenses at $12.5m, depreciation at $15.2m and amortisation at $13.6m made up the remainder of the total.
Other operating expenses amounted to $49.8m, a rise of 30.9%.
After considering the total expenses, the operating income was $52.5m, up by 30.8%.
Other costs amounted to $11.3m, bringing the pre-tax revenue to $41.2m.
After income tax provision at $9.7m, the total net income for the quarter was $31.5m, up by 53.5%.
“We delivered record first quarter financial results, including revenues, net income, adjusted EBITDA and free cash flow,” said Taylor.
“Our performance was a strong start to the year and reflects our talented global workforce's successful delivery of innovative, high-value solutions that continue to generate increased demand due to their ability to help our customers grow their businesses and improve their cost efficiencies.”
During the quarter Everi underwent a number of business changes. In January the business agreed to acquire certain assets from Atlas Gaming Technologies. The same month, Everi announced three new appointments to its board of directors.
In February Everi acquired payments provider Ecash in a deal worth up to AU$43m ($30.4m/€26.7m/£22.5m).