Supplier News
US – Everi sees quarterly sequential improvements
By Phil - 10 March 2021
Everi Holdings’ 2020 fourth quarter results showed quarterly sequential improvement from the 2020 third quarter, despite the continued impact from the COVID-19 pandemic and related casino closures, with the headline story for the quarter being two casino customers going live with digital wallets powered by CashClub Wallet.
Revenues rose to $119.6m from $112.1m in the 2020 third quarter with a focus during the closures on game development.
Michael Rumbolz, Chief Executive Officer of Everi, said: “A key factor behind the momentum in our Games segment has been the quarterly sequential growth throughout 2020 in the total installed base of our gaming operations, as well as the increases in daily win per unit of our active units. In particular, the 26 per cent year-over-year increase in premium units reflects the popularity of our games, which is driving active unit performance at higher levels compared to the pre-pandemic period. In addition, the continued strength of our mechanical reel games and demand for our new for-sale Flex video cabinet helped drive a 62 per cent quarterly sequential increase in units sold. While total cash access transactions reflect a sequentially lower level of casino activity in the quarter due to the pandemic, increased equipment sales and ongoing demand for our loyalty products and services resulted in FinTech revenues being comparable to the third quarter. We also made notable progress with the commercialisation of our CashClub Wallet digital offering in the quarter, as two large casino operators went live with mobile wallets powered by our technology. We continue to see strong interest in our innovative cashless solution and expect additional implementations of CashClub Wallet technology over the next several quarters.
“The quarterly sequential increase in revenues, net income and Adjusted EBITDA achieved in the fourth quarter reflects the strength and balance of our businesses, in particular our significant percentage of higher-margin recurring revenues, and our track record of consistent operating execution. Year-over-year progress in several of our operating metrics, despite increased restrictions on certain casino activities during the quarter, is a direct result of the significant advances in our Games and FinTech product portfolios. These advances reflect our focus on developing new, innovative products to help our customers extend their relationship with their guests and operate more efficiently, and for which we are seeing increasing demand. Our improved operating performance, together with the ongoing benefits of our cost savings initiatives, resulted in an increase in operating income, our return to generating net income and in Free Cash Flow more than tripling compared to last year’s fourth quarter.”
“Despite the ongoing impact of the COVID-19 pandemic, our Games development teams continue to create original, entertaining, in-demand games that provide memorable player experiences. At the same time, our FinTech development teams are achieving consistent progress in the creation of a fully integrated digital neighborhood for casinos that drives improved operational efficiencies and creates seamless, convenient player transactions. Our success in implementing our new product development priorities is driving continued strength in key performance metrics and enabling us to execute on new opportunities, such as the burgeoning demand for cashless funding solutions. This success, combined with our focus on optimising our operations, is enabling Everi to address the industry’s current challenges and further positioning us to consistently grow our financial results as the operating environment normalises.
“Throughout 2020, we met every challenge, demonstrating Everi’s dedication and unwavering commitment to provide our customers and their patrons with exceptional products and services. I could not be prouder of the entire Everi Team,” concluded Mr. Rumbolz.
Mark Labay, Executive Vice President and Chief Financial Officer, added: “The recent repricing of $735.5m of our Senior Secured Term Loan in February 2021 will save approximately $1.8 million in interest costs on an annualized basis at current rates. Those cash savings will provide a further boost to the higher level of Free Cash Flow that we expect to generate from our improving operating results. This attention to all aspects of our business is another example of our focus on building value for all our stakeholders.”
