Financial-technology-business revenue grew, but games business ticked down in the third quarter for Everi Holdings, prompting unadjusted net income to drop. Adjusted earnings per share topped Wall Street forecasts, but revenue missed.
In a statement Wednesday, the Las Vegas-based gaming-equipment and cash-access provider said its net income was $26.6 million, or 29 cents per diluted share, for the three months ended Sept. 30, down from $29.4 million, or 30 cents per diluted share, a year earlier. Lower unit sales and lower daily win per unit dampened the latest results, the company said.
Adjusted earnings per share, which exclude one-time costs, were 44 cents per share, the same as a year earlier and enough to top the 29-cents-per-share consensus forecast of analysts surveyed by Seeking Alpha.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, fell 0.4% to $96.2 million from $96.6 million.
Revenue rose 1.1% to $206.6 million from $204.3 million, but missed the $204.6 million forecast of Seeking Alpha-polled analysts.
During the quarter, Everi reached another quarterly high for funds delivered to casino floors, with more than $11.9 billion. The company’s financial-technology revenue was $95.1 million in the third quarter, up 4% from a year earlier. Software and other revenue rose 12% and financial-access revenue rose 7%, partly offsetting a 20% decrease in hardware revenue.
Games revenue, meanwhile, slid 1% to $111.5 million, as gaming-operations revenue rose 5%, partly offsetting a 12% decline in gaming-equipment and systems-sales revenue.
In the statement, Everi Chief Executive Officer Randy Taylor said his company is preparing to release its next-generation game cabinets with more than 80 new game themes.
During a Wednesday conference call with analysts and journalists, Taylor expanded on this. “This portfolio represents a diversity of content for our video offerings that builds in players’ favorite game features, additional never-seen-before innovative themes, and our new Everi content that all in all targets both the entertainment and the players.”
Everi said it’s on track to enter the video-lottery-terminal market in the United Kingdom by 2024 and new international markets in 2024 and 2025, starting with Australia.
In the question-and-answer session, Taylor said Everi’s installed-games base may decline slightly through the end of the fourth quarter, but will rebound sometime in 2024. He also said the company continues to believe in working on both games and financial technology, because the pairing has helped the company succeed. “We continue to believe in the combination of the two businesses.”
Everi Holdings shares fell 14 cents, or 1.18%, Wednesday to close at $11.76 on the New York Stock Exchange. The share price has dropped 21% in 2023.
