Crane NXT, parent of gaming payment technology supplier Crane Payment Innovations (CPI), reported a 22 percent increase in second-quarter revenue to $493.2 million and raised its full-year earnings guidance on Wednesday.
Net income attributable to common shareholders rose 42.2 percent year-on-year to $35.4 million. Adjusted EBITDA was up 18 percent at $115.5 million.
Organic revenue, which strips out acquisitions and currency movements, grew a more moderate 3 percent in the three months to June 30th.
The Detection and Traceability Technologies segment, which houses CPI, recorded a 26.1 percent increase in revenue to $266.5 million. The gain came entirely from acquisitions — principally the Antares Vision business acquired at the end of March, which contributed $63.7 million. On an organic basis, segment revenue fell 3.4 percent.
Segment profitability weakened despite the higher revenue. Operating profit fell 10.2 percent to $44.0 million, with the GAAP operating margin narrowing 670 basis points to 16.5 percent and the adjusted EBITDA margin down 170 basis points to 26.4 percent.
CPI generated mid-single-digit growth in service revenue, offset by lower hardware and vending sales, according to the company’s earnings presentation. Crane NXT does not break out gaming-related revenue separately.
The company lifted the lower end of its full-year earnings guidance and maintained its projection for annual sales growth of 15 to 17 percent.
