Revenue for the 12 months to 31 December 2021 amounted to $660.4m, up 72.1% from $383.7m in the previous year.
Gaming remained Everi’s core business with revenue here reaching $376.7m, an increase of 88.1%. Some $272.8m of this came from gaming operations, with $103.8m was generated through gaming equipment and systems, and $118,000 from other gaming activity.
Financial technology (Fintech) revenue also climbed 54.7% to $283.7m, with Everi reporting growth across all areas of this business. Financial access services revenue reached $178.0m, software and other revenue $67.8m and hardware revenue $37.8m.
Everi noted a number of highlights during the 12-month period including the acquisition of certain strategic assets of Meter Image Capturing (MIC), a provider of progressive meter reporting solutions to the gambling sector.Also in 2021, the Everi Digital online division launched its online gaming services in the US state of Connecticut.
In December, Everi announced it was to restructure its leadership team, moving Michael Rumbolz from the role of chief executive to executive chairman, while chief operating officer Randy Taylor took over as CEO.
Shortly after the year-end, Everi announced further changes to its board of directors, while the business also acquired Australia-based gaming industry payment solutions provider Ecash Holdings.
Looking at costs for the year and operating expenses across all areas of the business were up 23.9% to $188.9m, while R&D spend also increased 40.2% to $39.1m.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) almost doubled year-on-year, climbing 96.7% from $176.5m to $347.2m. Depreciation expense totalled $61.5m and amortisation $58.0m, leaving an operating profit of $197.5m, compared to a $5.4m loss in 2020.
Everi also noted $62.1m in interest expense and attributed a further $34.4m loss to the extinguishment of debt, resulting in a pre-tax profit of $101.0m, a stark contrast to the $87.4m loss in the previous year.
The business received $51.9m in tax benefits and, after accounting for $264,000 in gain on foreign currency translation, net profit was $152.7m, compared to an $82.1m loss in 2020.
Turning to the final quarter of the year, revenue for the three months to 31 December was $180.4m, an increase of 50.6% from $119.6m in the previous year. Games revenue was 62.4% higher at $105.5m, while FinTech revenue jumped 37.4% to $75.0m.
Operating costs were $55.6m and R&D expense reached $12.3m, which meant adjusted EBITDA for the fourth quarter was a record $88.8m, up 45.1% year-on-year.
After including $14.9m in depreciation costs, $14.3m worth of amortisation and $11.6m in interest expense, pre-tax profit was $36.2m, compared to a $1.2m loss in 2020.
Everi received $53.2m in tax benefits, which meant that after also accounting for $71,000 in gain on foreign currency translation, net profit reached $89.5m, up 4,161.9% year-on-year.
“Our record fourth quarter 2021 results capped a year in which we delivered record-setting annual financial performance across our business,” CEO Rumbolz said. “Driven by significant successes in both our games and FinTech segments, we achieved new all-time full-year records for revenues, net income, adjusted EBITDA, and free cash flow.
“This performance reflects our strategic focus on growing our recurring revenues and our continued investment in the development of new and enhanced products that help our customers grow revenue and manage their business more effectively. The dedicated and collaborative efforts of our talented global workforce to execute on our operating priorities is clearly evidenced in these strong results.”
Looking ahead, Rumbolz added that he was confident that newer divisions would drive further growth.
“As we begin 2022, our core recurring-revenue businesses continue to grow and our newer initiatives – including igaming and cashless wallet technology – have a strong foundation from which we expect to generate substantial contributions to our future financial performance.”
Original article: https://igamingbusiness.com/record-revenue-drives-everi-to-152-7m-net-profit-in-fy21/
