Casino products and player loyalty solutions provider Everi Holdings Inc reported a slight 1% increase in consolidated revenues to US$206.6 million in 3Q23, with a 4% increase in FinTech segment revenues to US$95.1 million offset by a slight decline in Games segment revenues to US$111.5 million.
Of these, recurring revenues increased by 7% to US$154.3 million, driven by growth in both the Games and FinTech segments, while revenues from one-time sales fell by 14% to $52.3 million due to a decrease in gaming equipment and systems sales and a decline in FinTech hardware and one-time software sales.
Operating income, Everi said, was down 4% to $52.4 million as a result of higher operating expense and depreciation, reflecting higher labor costs and costs associated with recent acquisitions.
Adjusted EBITDA fell very slightly to US$96.2 million in the 2023 third quarter compared to $96.6 million in the prior-year period.
With results for the September quarter slightly subdued, Everi said it expects Adjusted EBITDA for FY23 to be in line with the prior year, with net income, EPS, Free Cash Flow and Adjusted EPS to be at the lower-end of recently updated guidance ranges.
The company said in reporting its results for the June quarter that it expects to report net income for FY23 of between US$98 million and $106 million, Adjusted EBITDA of between US$380 million and US$386 million and Free Cash Flow of between US$147 million and US$153 million.
Randy Taylor, Everi’s Chief Executive Officer, said, “We continue to execute on our operational and product roadmap to drive long-term profitable growth in both our Games and Fintech businesses. We are introducing our next generation of for-sale and for-lease cabinets supported by more than 80 new game themes representing the most diverse range of gaming content in the Company’s history, including an increased emphasis on the video reel segment.
“We continue to add to and strengthen our FinTech product and service offerings that provide connectivity and value for our customers.
“Additionally, we are making progress in the integration of our recent acquisitions to establish the foundation for new avenues of growth both in Games, such as for Bingo, Historical Horse Racing and Video Lottery Terminal market categories, and in FinTech where we look to extend our Digital Neighborhood to bring new value to casino operators through our on-premise mobile gaming offering and an enhanced mobile wallet, as well as to expand into non-gaming sports and entertainment venues and other global gaming markets.
“We remain on track to enter these new markets including the VLT category and the UK mobile gaming market in early 2024 and other new international markets in late 2024 and 2025, which should contribute incremental revenue growth opportunities.”
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