Everi Holdings reported a 17 percent increase in second quarter EBITDA to .9 million on new revenues of 7.1 million, also a 17 percent increase over the same period last year.
The gaming technology and payment processor attributed the gains to strong performances from its cash advance and ATM segments, which grew by 19 percent and 18 percent, respectively.
“We continue to benefit from a broad range of growth drivers,” said President and CEO Michael Rumbolz. “These include positive macroeconomic trends and regional gaming revenue growth, which are helping to drive same-store improvements in cash access transactions and cash to the floor.”
The games segment was essentially flat year-over-year in terms of both net revenues and adjusted EBITDA, the result of a smaller installed base and lower daily win per unit. Class II installations were up by nearly 1,000 units over last year, but the Class III base shrunk by nearly 1,200 units.
“We have been challenged in our gaming operations business by the ongoing removal of older, third-party Class III games from a customer’s facilities in Oklahoma,” Rumbolz explained. But he said a new agreement with a large customer in the state had been reached to supply 4,300 Class II games over the next seven years.
Company-wide, Everi reported a net loss of $19.1 million, up from $10.8 million in Q2 2016, but Telsey Group analyst David Katz said, “As the domestic casino markets are providing a positive operating context, we expect the valuation and underlying earnings to improve, which implies considerable upside potential going forward.”
Consolidated adjusted EBITDA was up 6 percent to $54.1 million on a 13 percent increase in revenues to $242.2 million. Operating income was up from $6.1 million in the prior year quarter to $21.3 million.
The company raised its full-year EBITDA guidance to between $209 million and $212 million.
