Everi, the gaming equipment manufacturer and payment systems provider, continued its trajectory toward profitability Monday afternoon with a solid third quarter earnings report and a momentum boost delivered by a strong showing at G2E in October.
“It’s truly an understatement to say that G2E 2017 was our best showing ever for both our payments and games segments,” said Michael Rumbolz, chief executive officer of Everi.
“I went into G2E very optimistic, but our customers are always the real judge and jury,” he continued. “I left there with the feeling that across the board we not only accomplished our goals, we exceeded many of them.”
For the quarter ending September 30, the Las Vegas-based company reported net revenues of $247.3 million – an 11 percent jump year-over-year.
Operating income was up from $11.6 million to 19.8 million, and adjusted EBITDA grew from $51.6 million to $53.2 million from the prior-year quarter.
Net loss for the quarter was $4.3 million, an improvement from $8.3 million year-over-year.
“We continue to benefit from the investments and the process changes that we are making in both our games and payments technology development,” said Rumbolz. “We are also driving consistent growth in quarterly unit sales and ship share and we are reinforcing our position as the dominant provider of gaming industry payments solutions.”
Despite this strong position in the payment solutions and systems market, Rumbolz emphasized that the segment was a standout attraction for customers and attendees at G2E.
“At G2E, it’s easy for attendees to get sensory overload from all the lights and the sounds that are coming from the newest slot machines, including our own,” he said. “However, it was clear that our payments products and our demonstrations to customers easily cut through that noise to capture those customers’ attention.”
Of particular interest were the eWallet and Cash Club Wallet, which allow integration of existing payment systems across the gaming floor and provide players a new method of managing their funds, thereby reducing the overall cash circulation on the casino floor.
Over the first nine months of 2017, adjusted EBITDA for Everi’s payments division is up 20 percent year-over-year.
Revenues from the company’s compliance segment are also up 34 percent from 2016.
“This provides further evidence that our focus on innovation is translating to growing results,” said Rumbolz.
Slot machine sales also were strong during the quarter, prompting the company to revise its full year estimates for the segment to 20 percent year-over-year growth, including 12 percent growth in its Class II installed base.
Building on the success of its HDX cabinet, the company unveiled a new E43 model at the trade show earlier this month, a move that was well-received by customers.
“The E43 cabinet directly addresses our customers’ request for a single screen base cabinet in a for sale solution,” said Rumbolz. “The E43 was introduced to G2E with five game themes to very favorable customer response and we expect that it will be commercially available beginning in the fourth quarter.”
