Everi optimistic about 2023 after strong Q3 results

The leading provider of land-based and digital casino content, solutions and financial technology, Everi Holdings, released its third quarter results. Earlier this week, the company unveiled financial data regarding its performance for the three months ended September 30, 2022.

Overall, Everi's Q3 revenue hit $204.3 million. This result marked a strong 21% growth when compared to the $168.3 million reported for Q3 in 2021. A breakdown provided by the company reveals that its FinTech segment reported a 27% increase in revenue, while revenue from its games segment increased by 17%.

The company's net income in Q3 this year hit $29.4 million or $0.30 per diluted share, marking another increase when compared to the $6.7 million in net income and $0.07 per diluted share reported for the third quarter of last year.

Everi's latest trading update released details regarding the company's adjusted EBITDA. Similarly to revenue, adjusted EBITDA for the period increased and hit an all-time high record of $96.6 million. When compared to the $90.6 million in adjusted EBITDA reported for the corresponding period in 2021, an increase of 7% is observed, judging by a statement released by Everi.

On the other hand, the company reported an operating income of $54.6 million for the third quarter of this year. This marked a slight decrease when compared to the $55.1 million reported for the same period in 2021.

"The lower operating margin compared to the same period a year ago primarily reflects a change in the revenue mix, which resulted from the substantially greater growth in sales of gaming machines and FinTech hardware (that have lower margins) as the Company successfully increases its ship share and expands into new markets," explained Everi.

Randy Taylor, Everi's Chief Executive Officer, explained that the strong results during the quarter reaffirm the positive momentum the company gained and the high demand for its products. He added: "Our strong financial results this year have been driven by steady growth in our recurring revenue streams together with a record level of revenues from gaming machine and FinTech hardware sales."

Taylor pointed out that during the Global Gaming Expo (G2E) last month, the company enjoyed a positive response from customers upon displaying its newest products. He acknowledged that the company's recent acquisitions in combination with the positive feedback from the G2E reaffirmed its positive outlook for 2023.

"With our confidence in our long-term growth prospects and a belief that the current valuation of our Company does not fully reflect our underlying strength and growth opportunities, we have been returning capital to shareholders through opportunistic repurchases of our shares as part of our focus on creating additional long-term shareholder value," said Everi's CEO in conclusion.

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