Revenue and profits declined for Everi Holdings in the first quarter of 2024. The slot manufacturer generated revenue of $189.3 million, down from $200.5 million in the first quarter of 2023. Profits fell to $4.6 million from $28.1 million.
Both adjusted and free cash flow also tightened. The former was $80.3 million, compared to $92.5 million a year ago, while free cash flow dropped to $14 million from $40.1 million.
Everi’s installed base of Class II and Class III machines shrank to 16,917 from 17,841. Its average units installed went from 17,898 to 17,256. The company attributed the shrinkage in installed machines to its “proactive decisions not to replace cabinets in lower-performing locations.” Daily win per unit went from $38.37 to $34.51.
One of the few upward metrics was the average price per slot machine, which rose from $19,748 in early 2023 to $20,827 this year.
Everi CEO Randy Taylor allowed that the transition to newer slot cabinets “has been slower than anticipated, [but] we are gaining momentum with these efforts and expect our progress will continue to accelerate throughout the back half of the year. Starting in the second quarter, we expect this momentum to translate into improvements in sequential quarterly unit sales.”
Taylor said Everi was “making progress on the steps necessary to complete the proposed merger with IGT’s Global Gaming and PlayDigital businesses later this year or in early 2025.”
The CEO found a silver lining in the performance of Everi’s fintech business. He said, “Our highest-margin financial access and software and other revenue categories continued to grow in the first quarter, though this growth was more than offset by a decline in hardware revenues, which are less predictable on a quarterly basis. We expect consolidated hardware sales will recover over the balance of the year.”
Fintech revenues slipped to $92.2 million. Everi blamed this on poor January weather that adversely affected its customer base.
Everi had $268.6 million in cash on hand, against debt of $980.5 million. The stock slipped to $7.78 per share in early trading.
