Revenue increased by 1.1% to $206.6m (£168.3m/€193.4m) versus $204.3m in Q3 2022 in the three months until 30 September. By comparison, Everi posted a 6% year-on-year revenue increase in Q2 this year.
Accordingly, Q3 net income fell to $26.6m from $29.4m in comparison with the corresponding period last year. Adjusted EBITDA in Q3 was relatively flat year-on-year at $96.2m versus $96.6m in 2022.
Games segment headwinds
In the latest quarter, games segment sales declined by 1% to $111.5m. A 4.5% rise in gaming operations-related revenue was offset by a 11.7% decline in gaming equipment and systems sales.
Gaming operations revenue increased from $69.9m to $71.9m for land-based casinos and from $5.1m to $6.5m in igaming, respectively. However, this was mitigated by a decrease in revenue from gaming equipment and systems sales from $37.5m to $33.1m.
Everi CEO Randy Taylor said the figures were affected by “lower unit sales and lower daily win per unit” in games.
Over the first nine months of 2023, total games revenues increased from $323.2m to $332.0m year-on-year. Fintech sales improved from $254.0m to $283.7m, driving an increase in total revenue from $577.2m to $615.8m.
However, a rise in total costs from $415.4m to $458.0m squeezed operating income, which decreased from $161.8m to $157.8m.
Outlook and return to growth
Accordingly, Everi updated its outlook for 2023. Net income, earnings per share and free cash flow are expected at the lower end of previous guidance ranges. In August, full-year net income was projected to be between $98m and $106m.
However, Taylor is hopeful of a “return to growth next year and beyond”. Central to this will be Everi’s investment in research and development and a “deep pipeline” of new cabinets and content.
He also underlined “positive feedback received for our newest product introductions”.
Everi is introducing its next swathe of for-sale and for-lease cabinets, supported by more than 80 new game themes. This represents “the most diverse range of gaming content in the company’s history,” Taylor said.
Original article: https://igamingbusiness.com/casino-games/headwinds-everi-q3/
