Everi Holdings has published its financial results for the second quarter of 2022, reporting that it has continued its record-breaking growth from the first quarter with new all-time Q2 bests in revenue and adjusted EBITDA.
In reaction to the quarter’s results, the Las Vegas-based casino games and player loyalty solutions provider also reiterated its 2022 outlook guidance for net income, adjusted EBITDA, and free cash flow.
Everi has reported new Q2 revenue records of $197.2m, a 14% year-over-year growth on Q2 2021’s $172.6m. Recurring revenues increased by 7% to $139.7m, and revenues from non-recurring sales improved by 37% to $57.5m. Sales of gaming machines and FinTech hardware also saw a 37% increase.
The provider’s net income for the quarter stood at $32.5m or $0.33 per diluted share (2021: $36.2m or $0.36 per diluted share) as the provision for income taxes increased by $9.3m due to the reversal of deferred tax asset valuation allowance in Q4 2021.
Everi’s adjusted EBITDA improved to an all-time quarterly record of $94.4m (2021: $92.5m), and free cash flow grew by 26% YoY to $49.5m (2021: $39.2m).
Everi Games and Fintech businesses excel
Commenting on the results, Everi CEO Randy Taylor noted that the record-breaking results were driven by recurring revenues in the provider’s Games and FinTech businesses.
Taylor said: “Our strong operating momentum continued in the second quarter, as we delivered all-time quarterly record revenues, income before income tax, Adjusted EBITDA and Free Cash Flow.
“These record financial results were driven by another consecutive quarter of record recurring revenues for both our Games and FinTech businesses despite the very challenging year-over-year comparison for these operations, as last year’s results included the significant benefit from casino reopening activities and financial stimulus payments provided to consumers.”
Per segment, Games contributed $112.3m towards Everi’s total revenue, a 13% YoY improvement (2021: $99.3m). Land-based casinos earned $68.2m in revenue (2021: $69.6m), digital operations achieved $5.8m (2021: $3.6m), and equipment and systems reported $38.3m (2021: $26.1m).
Fintech revenue for Q2 came in at $84.9m, a 15.9% YoY increase (2021: $73.2m), with a 14% growth in financial access services, a 22% upsurge in software and other revenues, and a 17% improvement in revenues from hardware sales.
“Our second quarter Games segment results include our highest-ever quarterly level of gaming machines sold, which increased 40% to 1,957 units; and the 13th consecutive quarterly sequential increase in our installed base of gaming operations units,” Taylor stated.
“Our ongoing investments in the development of differentiated cabinets and expansion of our games portfolio continues to drive increases in our installed base, strong Daily Win per Unit, and growth in our ship share of units sold. In particular, the record number of units sold in the quarter reinforces our confidence in our ability to achieve our 15% ship share target over the next several years.
“Our FinTech segment is achieving similar success, as it generated record revenues, operating income and Adjusted EBITDA for the third consecutive quarter.
“The record quarterly performance was driven by increased revenues from financial access services, which included more than $10bn of funding delivered to our customers’ casino floors for the second consecutive quarter, a record number of kiosk sales, and ongoing organic growth of our Loyalty and RegTech solutions.
“These results demonstrate our ability to offer industry-leading, integrated solutions that help drive increases in same-store activity and cost efficiencies for our customers. With our planned introductions of additional innovative products to our Digital Neighborhood of integrated solutions, our FinTech business is positioned to deliver consistent growth.”
Taylor noted that Everi’s “top-line growth and focus on operational excellence” has resulted in a strong free cash flow of $49.5m in Q2.
The provider remains focused on allocating its free cash flow to “further grow the business through prudent investments in product development” as well as with acquisitions “that continue to expand the scale and scope of our product offerings and/or drive our entry into new product categories and geographical markets”.
Looking ahead, Everi reiterated its full-year 2022 guidance for net income of $125m to $132m, adjusted EBITDA of $368m to $378m, and free cash flow of $187m to $200m.
