Everi Holdings saw its first quarter revenues rise 26 per cent to $175.6m from $139.1m in the 2021 first quarter, led by a quarterly record $134.4m of recurring revenues.
Randy Taylor, Chief Executive Officer of Everi, said: “We delivered record first quarter financial results, including revenues, net income, Adjusted EBITDA, and Free Cash Flow. Our performance was a strong start to the year and reflects our talented global workforce’s successful delivery of innovative, high-value solutions that continue to generate increased demand due to their ability to help our customers grow their businesses and improve their cost efficiencies.
“The improved operating results, led by growth in our high-margin recurring revenue streams, which were up 23% year over year to $134.4m, are translating into sustainable Free Cash Flow. This enables us to continue prioritizing return-focused investments that will grow our addressable markets, further support our internal product innovation and pursue additional accretive, scalable acquisitions. In the first quarter, we increased our global presence with the acquisitions of an Australia-based FinTech technology provider and a games development team that will form the nucleus of a new game studio in Australia. Our expansion has continued in the second quarter with the recently announced acquisitions of Intuicode Gaming Systems that accelerates our growth prospects within the Historical Horse Racing category of gaming products with an experienced development team and with long-term recurring revenue contracts for existing and future content distribution, as well as with XUVI, which adds a powerful analytics and artificial intelligence engine to our FinTech Loyalty business. At the same time, our improved balance sheet and strong Free Cash Flow also provide the flexibility to return capital to shareholders through a share repurchase program, as we believe our stock offers a great value at the current valuation. Given the ongoing strength of our business and our growth opportunities, we expect to remain on track to deliver continued year-over-year growth in 2022.”
Mr. Taylor, added: “For the second consecutive quarter, our FinTech segment generated record revenues and Adjusted AEBITDA. The record quarterly performance was driven by increased revenues from financial access services, strong quarterly kiosk sales and the ongoing organic growth of our Loyalty and RegTech solutions. These results reflect our ability to offer industry-leading, integrated solutions that help drive consistent market share gains and increases in same-store activity. We believe our FinTech business is positioned to grow through the addition of new customers and the deployment of an increasing number of innovative products.
“Our Games segment results benefitted from ongoing operating momentum as reflected in the 12th consecutive quarter-end increase in our installed base of gaming operations units, and a 56 per ent year-over-year increase in sales of gaming machines to 1,474 units as we continue to grow our ship share, thanks to the success of our expanded portfolio of player-popular games and differentiated cabinets. With the recent installations of our new Player Classic Signature mechanical reel cabinet, we continue to expand our Games product portfolio, which we expect will help drive further market share growth. In addition, as the replacement cycle of gaming machines returns to pre-pandemic levels, we expect our continued investments in new game and cabinet development favorably position Everi to make steady progress toward our target of 15 per cent ship share over the next several years.”