US-based digital casino products and player loyalty solutions provider Everi Holdings Inc appears to have fully recovered from the impacts of COVID-19, with net income almost four times higher than in 1Q19 – a year earlier than the start of the global pandemic.
According to the company’s 1Q21 financial results published overnight (Asia time), Everi recorded net revenue of US$20.5 million for the quarter, higher than the US$5.9 million in net income recorded in 1Q19 and reversing a US$13.5 million loss in the first quarter of 2020.
Revenues also outperformed at US$139.1 million compared with US$123.8 million in 2019 and US$113.3 million in 2020, while Adjusted EBITDA of US$75.4 million was 18.7% higher than in the 2019 first quarter.
Everi said the results reflect pent-up consumer demand as capacity limitations on casinos were reduced.
“We are off to a strong start in 2021 with first quarter record revenue; and all-time quarterly record net income, Adjusted EBITDA and Free Cash Flow,” said Everi CEO Michael Rumbolz.
“The substantial improvement in our operating results demonstrates the significant ongoing demand for our products in both our Games and FinTech segments. Our success in developing player-popular slot products and the industry attractiveness of our trusted financial and loyalty products are a direct reflection of our continued investment in the creation of new and enhanced products and services, as well as the talent and dedication of our entire Everi Team.
“Our Games segment momentum continues to reflect ongoing growth in our installed base of gaming operations units, in particular the consistent increases in placements of our higher-earning premium units that are helping to drive higher daily win per unit. We also believe that the ship share of our for-sale gaming units continues to expand.
“Our FinTech segment continues to benefit from our established leading share in the gaming FinTech market as well as strong demand for our newer loyalty products and services together with a high-level of interest in our cashless digital wallet solution. A key driver of the growth in our Games and FinTech business segments is our high-margin, recurring revenue streams, which we expect will help sustain our near- and long-term growth as the casino industry continues to recover.
“Importantly, our product momentum is translating into improvement in both our earnings and cash flow. This improvement enables us to continue to prudently invest in product innovation to sustain our growth, while also positioning Everi to return to our focus on reducing leverage. Our strong start to 2021, which has continued into the second quarter, is a great indication that we are already regaining our pre-pandemic momentum, including our expectation that 2021 full year results will exceed the levels achieved in 2019.”