Land-based and digital casino products and player loyalty solutions provider Everi Holdings has recorded a 1 percent increase in revenue during the third quarter, topping $206.6 million, as its FinTech business outperformed its Games segment.
The FinTech arm brought in some $95.1 million in revenue, up 4 percent yearly, with a 12 percent increase in software revenues and 7 percent rise in financial access revenues, hindered by a 20 percent decrease in hardware revenues.
In the Games segment, revenue fell 1 percent, to $11.5 million, with a 5 percent increase in gaming operations revenue cut by a 12 percent drop in gaming equipment and systems sales revenue.
Profit fell to $26.6 million, from $29.4 million in the same period of 2022.
Adjusted EBITDA also fell, hitting $96.2 million, compared to $96.6 million in 3Q22.
Speaking of the results, the company’s CEO, Randy Taylor, noted that “We continue to execute on our operational and product roadmap to drive long-term profitable growth in both our Games and Fintech businesses”.
Looking ahead, the group is focusing on new growth avenues, such as Bingo, Historical Horse Racing and the Video Lottery Terminal (VLT) markets, as well as FinTech.
“We remain on track to enter these new markets including the VLT category and the UK mobile gaming market in early 2024 and other new international markets in late 2024 and 2025, which should contribute incremental revenue growth opportunities,” notes the CEO.
“Our third quarter results reflected the near-term headwinds in our Games segment including the impact from lower unit sales and lower daily win per unit. Despite these challenges, we continue to generate strong Free Cash Flow which totaled $122.1 million for the first nine months of the year.”
“This level of Free Cash Flow has allowed us to aggressively return capital to our shareholders as reflected in our $74 million of share repurchases so far in 2023 and to continually reinvest in our product portfolio,” stated Taylor.
