US Online Casino Company Everi Reports Record Growth In Q2

Everi Holdings announced results for the second quarter, ending June 30, 2022, and reported it has continued its record-breaking growth from Q1 2022.

The US online casino games provider, which is based in Las Vegas, also reiterated its full-year outlook for net income, adjusted EBITDA and free cash flow.

Everi Q2 revenue highlights showcase increase in popularity of its US online casinos

Everi revenues grew 14% to an all-time quarterly record of $197.2m from Q2 2021’s $172.6m. It reflects a 7% increase to $139.7m, while revenues from non-recurring sales went up by 37%, reaching $57.5m. Sales of gaming machines and FinTech hardware also increased by 37%.

The company’s net income for Q2 was $32.5m or $0.33 per diluted share (compared to Q2, 2021, when it was $36.2m or $0.36 per diluted share), as the provision for income taxes increased by $9.3m because of the reversal of deferred tax asset valuation allowance in the 2021 fourth quarter.

Everi’s adjusted EBITDA (earnings before interest, taxes, and amortization), a non-GAAP financial measure, reached an all-time quarterly record of $94.4m (in 2021, it was $92.5m), and free cash flow grew by 26% YoY to $49.5m (compared to 2021
Q2’s $39.2m). The company also repurchased 2.0 million shares of stock worth $33.3 million in Q2, 2022.

As Randy Taylor, the company’s CEO, explained, recurring revenues drove the record-breaking results in Everi Games and FinTech businesses:

“These record financial results were driven by another consecutive quarter of record recurring revenues for both our Games and FinTech businesses despite the very challenging year-over-year comparison for these operations, as last year’s results included the significant benefit from casino reopening activities and financial stimulus payments provided to consumers.”

He also said the company’s Q2 Games segment results include the highest-ever quarterly level of gaming machines sold, which increased 40% to 1,957 units. It’s the 13th consecutive quarterly sequential increase in Everi’s installed base of gaming operations units.

Taylor continued:

“Our ongoing investments in the development of differentiated cabinets and expansion of our games portfolio continues to drive increases in our installed base, strong Daily Win per Unit, and growth in our ship share of units sold. In particular, the record number of units sold in the quarter reinforces our confidence in our ability to achieve our 15% ship share target over the next several years.”

Everi’s focus on operational excellence

Everi remains concentrated on using cash flow to further grow its business, invest and develop products its players enjoy.

The company also continues to focus on acquisitions of businesses and technologies. This will increase the scale of its products while driving entry into markets.

“As reflected in the growing contributions of our Loyalty products, our return-focused approach to acquisitions benefits our operating performance. We expect recent acquisitions, which have expanded our addressable market to include opportunities in Australia and Historical Horse Racing gaming devices, will deliver similar benefits over time. Our Free Cash Flow performance, liquidity, and strong balance sheet also enabled us to opportunistically act on our share repurchase program in the second quarter given our view that our current valuation does not fully reflect the strength of our business and our outlook for ongoing growth,” Taylor concluded.

Reflecting the operating performance in the first half of 2022, Everi reiterated its full-year guidance for net income of $125m to $132m while adjusting EBITDA of $368m to $378m and free cash flow of $187m to $200m.