Digital casino products and player loyalty solutions provider Everi Holdings Inc saw its group-wide revenues rise by 14% year-on-year to US$200.5 million in 1Q23, buoyed by solid increases in both its games and FinTech segments.
Games segment revenue grew by 9% on the prior year period to US$107.4 million, of which US$68.8 million was from gaming operations in land-based casinos, US$6.5 million was from gaming operations in Digital iGaming and US$32.1 million from gaming equipment and systems.
Fintech segment revenues grew by 20% year-on-year to US$93.1 million, comprising US$56.2 million from financial access services, US$24.2 million from software and US$12.7 million from hardware.
However, higher costs saw net income slightly down year-on-year to US$28.1 million. Adjusted EBITDA of US$92.5 million was up 3% on 1Q22 levels.
Everi CEO Randy Taylor said, “Overall, our first quarter results continued to demonstrate our consistent growth profile, as we further execute on our organic growth initiatives and benefit from several acquisitions we completed over the last twelve months.
“As a result, and despite the uncertainty of the macroeconomic environment and higher interest rates, we continue to be favorably positioned to deliver solid top-line growth that we expect will generate at least US$92 million of net income and at least US$150 million in Free Cash Flow this year.
“Revenues for our Games segment rose 9% year over year, reflecting a 15% increase in our gaming equipment revenues in the quarter even, as expected, customer demand slowed ahead of the launch of our new Dynasty VueTM cabinet. Customer deliveries of this new cabinet began on schedule and early customer and player feedback has been encouraging, as we are seeing strong initial demand.
“In our FinTech segment, we achieved another quarter of strong double-digit growth in revenue, operating income and Adjusted EBITDA. Solid same-store growth in transactional activity led to player funding that exceeded US$11 billion on a quarterly basis for the first time and drove revenue growth in financial access services. This growth, combined with even higher growth in hardware and software and other revenues, helped drive an all-time quarterly record in FinTech revenues.”
