Global gaming and loyalty solutions provider Everi Holdings Inc has demonstrated a rapid recovery from the impact of COVID-19 with revenues up 190% quarter-to-quarter in the three months to 30 September 2020 and a net loss of just US$900,000 versus a 2Q20 loss of US$68.5 million.
With casinos and gaming operations across the world reopening, Everi said improvements in both its Games and FinTech segments had seen revenues rise from US$38.7 million in the second quarter to US$112.1 million – down 16.7% year-on-year.
Adjusted EBITDA was also down slightly year-on-year but up 94.5% sequentially to US$59.8 million, with Everi revealing it had managed to repay the entire US$35 million it had previously redrawn on its revolving credit facility.
“The significant quarterly sequential improvement in revenue, net income, Adjusted EBITDA and Free Cash Flow in the third quarter demonstrates a quicker than previously expected recovery in our results,” said CEO Michael Rumbolz.
“Our operations strengthened throughout the third quarter, with better performance at the end of the quarter compared to earlier in the quarter. While the future impact of the pandemic remains uncertain, our improved results highlight the resilience and strength of our recurring-revenue streams.
“The installed base of our gaming operations premium units increased year over year by 40% in the quarter, largely reflecting a return to the strong, pre-pandemic performance levels of our active units. In addition, the number and value of cash access funding transactions improved during the third quarter, and casino operators demonstrated their further preference for our loyalty products, with a significant year-over-year increase in the sales of our self-service kiosks.
“This strong operating performance, combined with the benefits of our initiatives to streamline operations and improve our overall cost structure, resulted in Free Cash Flow that was more than double last year’s level. This improvement in cash flow and liquidity enabled us to repay the outstanding balance on our revolving credit facility and reduce future interest costs, while positioning us to maintain appropriate liquidity to prudently manage through this still uncertain environment.”
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