Leading fintech and loyalty solutions provider Everi Holdings Inc saw its revenue fall by 5.6% to US$189.3 million and Adjusted EBITDA by 13.2% to US$80.3 million in 1Q24, impacted by a decline in core business segments and increased costs.
Net income of US$4.6 million was down from US$28.1 million a year earlier.
The quarter saw revenues in the Games segment fall 9.5% to US$97.1 million, remaining flat quarter-on-quarter, with Everi pointing to its ongoing transition to a new family of cabinets and content for the decline.
Specifically, it said half of the decline in the installed base during the quarter was attributable to the company’s decisions not to replace cabinets in lower performing locations. Everi launched its new for-sale Dynasty Sol cabinet late in 4Q23 and the premium-leased Dynasty Sol Sync cabinet late in 1Q24, adding that it expects the cabinets to grow in popularity as new games are introduced.
In the FinTech segment, revenues fell only slightly to US$92.2 million due to a decline in hardware sales, primarily from reduced unit sales of ticket redemption kiosks in certain foreign jurisdictions and lower loyalty equipment sales due to timing of initial software sales and installations.
The company explained that FinTech hardware sales tend to be large purchases tied to new contracts and contract renewals, so revenues can fluctuate on a quarterly basis.
Everi CEO Randy Taylor , said, “We are making progress on the steps necessary to complete our proposed merger with IGT’s Global Gaming and PlayDigital businesses later this year or in early 2025. We are excited about the significant growth opportunities we believe this combination will unlock. This transaction will bring together a comprehensive and complementary product set focused on our customers and their diverse needs which we believe will deliver substantial long-term value to our shareholders.
“Over the last several years, we have increased our investments in our employees and technology to develop our next generation of products that positions the Company for long-term growth. While conversion of these investments into increased revenues has taken longer than initially anticipated, we are on track to begin to deliver on several of our initiatives in the second half of 2024, including our initial video lottery terminal placements and our first gaming products for Australia.
“While our investments have led to higher payroll and related expenses, we believe investing in new products for our FinTech segment, for-sale and for-lease gaming products and products focused on new segments and jurisdictions will drive revenue growth in the second half of 2024 and position the company for long-term success.”
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