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Everi Updates FY2023 Outlook After Mixed Q3 Earnings Report

Written By Tebearau Egbe on November 9, 2023
Business Man Points To Everi Holdings FinTech

Everi Holdings Inc., a gaming technology provider, unveiled its third-quarter results ending on Sept. 30, 2023. The report presented a combination of growth in certain areas and declines in others.

The company also seized the opportunity to share its outlook for the entire fiscal year 2023.

Everi’s third quarter financial highlights

  • Generated $206.6 million in revenues, leading to a 1% increase.
  • The FinTech sector generated $95.1 million, showing 4% growth.
  • Games sector faced a 1% decline, resulting in $111.5 million in revenue.
  • Recurring revenue reached $14.3 million, reflecting 7% growth.
  • Net income decreased, resulting in $26.6 million.

Revenues update

Everi’s Q3 revenue saw a 1% decline from $206.6 million to $204.3 million when compared to 2022’s third quarter. Everi’s Q2 revenue was better as it saw a 6% increase with $208.7 million.

The company’s acquisitions, which were completed since July 1, 2022, contributed $8.1 million in the third quarter. Recurring revenue in Q3 2022 was $143.6 million, while this year it racked up to $154.3 million, causing a 7% increase, which was hugely influenced by the growth in Games and FinTech.

Games and FinTech overview

The Q3 report showed the Games sector generated $111.5 million, a 1% decline in comparison to last year’s revenue, which was $112.5 million. A detailed breakdown shows that gaming equipment and systems contributed $33.1 million, down from last year’s Q3 figure of $37.5 million.

Land-based casinos generated $71.9 million, which was an increase from last year’s $69.9 million. While digital iGaming experienced a slight increase from $5.1 million to $6.5 million.

In an Everi Holdings press release, Randy Taylor, chief executive officer of Everi, said:

“We are introducing our next generation of for-sale and for-lease cabinets supported by more than 80 new game themes representing the most diverse range of gaming content in the Company’s history, including an increased emphasis on the video reel segment. We continue to add to and strengthen our FinTech product and service offerings that provide connectivity and value for our customers.”

FinTech revenue amounted to $95.1 million, representing a 4% growth compared to the previous year, when it was at $98.1 million.

Operating income rose by 8% to reach $31.0 million, as opposed to the $28.8 million recorded in the previous year’s corresponding period. This increase can be attributed to the growth in revenue from more profitable products and services. Although, it is offset by increased operating expenses and research and development costs.

In 2023’s third quarter, adjusted EBITDA also increased, reaching $39.8 million, compared to $39.4 million.

Everi’s 2023 outlook update

Having updated their outlook for 2023, Everi expects the Adjusted EBITDA for the entire 2023 period to replicate that of last year. Anticipated results for the fiscal year 2023, including net income, earnings per share (EPS), free cash flow, and adjusted EPS, are projected to fall within the lower range of the guidance issued on Aug. 9, 2023.

This is due to a decreased operating income, partially mitigated by reduced net interest expenses, decreased tax liabilities, and lower capital expenditures for the entire year.

According to Taylor Everi, the company is advancing the integration of its recent acquisitions, laying the groundwork for new avenues of growth. This expansion encompasses games like:

  • Bingo
  • Historical Horse Racing (HHR)
  • Video Lottery Terminal (VLT) market sectors

Randy Taylor stated: “We believe our investment in R&D, our deep pipeline of innovative new cabinets and content, and the positive feedback received for our newest product introductions at this year’s G2E position us well to return to growth next year and beyond.”

Photo by PlayUSA
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Tebearau Egbe

Tebearau Egbe has written about gambling for more than four years. She has a Master's degree in philosophy and possesses a unique ability to dissect complex industry developments, distilling them into insightful narratives for readers.

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