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Everi’s Digital Division: A Bright Spot In First-Quarter 2024 Earnings

Written By Marc Meltzer | Updated:
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Everi (NYSE: EVRI) reported a dip in revenue and profit for the first quarter this year. The company’s fintech and retail slot machines saw a slowdown.

However, its digital business saw solid growth from online casinos during the first three months of the year. This growing segment of Everi could continue each quarter and into next year.

Between existing worldwide expansion, new games, and the upcoming merger with IGT, Everi’s digital business could have more of an impact on the bottom line in the future.

Key takeaways:

  • Everi’s first-quarter digital revenue increased.
  • New titles and types of games are in the pipeline for online casinos.
  • Overall revenue and profit for the first quarter of 2024 were lower than last year.
  • Merger with IGT should be finalized by early next year at the latest.

Everi’s digital revenue included in Games segment increased by about 13%

Everi Holdings Inc.’s Q1 2024 earnings report includes “games” and “fintech” revenue. The “games” section doesn’t offer specific information about specific divisions. Revenue from iGaming isn’t separated from the publicly available information.

Online casino games are still a relatively new division for Everi. During Everi’s earnings call, Executive Vice President, Chief Financial Officer, and Treasurer Mark F. Labay said: “Digital continues to be an important part of our business a great avenue for growth again.”

He added that the games allow the company to bring popular land-based casino content to other platforms. Labay directly addressed this segment’s revenue saying:

“Just a little over $7.3 million of revenue, so a nice year-over-year growth probably about 12%, 13% growth on a year-over-year basis in terms of performance there. So it’s again progressing nicely and continue to grow along path with our expectations.”

This segment could see growth when the merger with IGT is completed.

Plans for Everi digital include offering more table games for online casinos

Everi’s digital division is poised to grow this year. The company has three products including:

  • Spark – Digital Remote-Game-Server
  • Vi – On-Premise Mobile Gaming Platform
  • Video King – Tablet Based Bingo

At the beginning of 2024, Everi delivered games to 89 online casinos. The vast majority of the games available online, 79 of 117, come from themes used at land-based casinos.

Earlier this year, Caesars added nearly 70 Everi games to its online casino. The company will continue to offer land-based themes online. It will also create new white-label games for casinos to brand themselves.

There are only two table games available in Everi’s online catalog. The company hopes to change that this year and offer more table games for online casinos.

In addition to adding more table games, Everi plans on offering more topical game themes and new core slot themes. The company is also looking to add reel-less games that work on a slot game RNG (random number generator).

These quick-resolution games are growing in popularity. Oliver Bartlett from BetMGM mentioned this as an emerging game concept in Europe when discussing future endeavors for the company’s online casino.

While the company has plans for its online casino games, things could change when there’s a new organizational structure.

IGT’s PlayDigital and Global Gaming merger with Everi

Last year, IGT announced a merger between its Global Gaming and PlayDigital businesses with Everi. The tie-up should help both land-based operations and online casino games.

During the earnings call, Everi reps did all they could to avoid discussing the merger. The arrangement is still under review. Everi hopes the deal with IGT will become official later this year or early 2025.

Before the earnings call, Everi sent out a press release that opened with comments on the merger from Randy Taylor, Chief Executive Officer of Everi:

“We are making progress on the steps necessary to complete our proposed merger with IGT’s Global Gaming and PlayDigital businesses later this year or in early 2025. We are excited about the significant growth opportunities we believe this combination will unlock. This transaction will bring together a comprehensive and complementary product set focused on our customers and their diverse needs.”

When complete, the name Everi will cease to exist. The new name of the combined company will be International Game Technology and trade under the stock ticker IGT.

Everi seems to be caught in the middle of dealing with business today and preparing for a massive merger. That could be seen in its first-quarter earnings.

Q1 2024 earnings overview

During the first quarter, Everi reported lower net profit due to a drop in revenue and higher expenses. The gaming manufacturer and fintech company generated revenue of $189.3 million. This was lower than the same period last year when Everi reported $200.5 million in revenue.

Due to higher expenses, profits fell drastically from $28.1 million during the first quarter of 2023 to $4.6 million this year.

The games and fintech divisions both saw a slowdown during the first quarter of the year. Taylor said the company’s transition to new land-based slot machine cabinets and content is going slower than expected.

While the fintech division is the highest margin division of the company, business was hampered by bad weather around the country that reduced visitation.

Photo by katjen/Shutterstock
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Marc Meltzer

Marc grew up on the mean streets of the South Bronx. He's the rare combination of Yankees and Jets fan which explains his often contrarian point of view. Marc is a freelance writer and social media consultant. Writing about steak, booze, gambling and Las Vegas is a tough job but somebody has to do it.

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