Everi Holdings has achieved better than expected results during 2020’s second quarter, as the casino, digital, and gaming industry entertainment and tech provider re-emphasises a prior withdrawal of its 2020 financial outlook due to ongoing uncertainty.
Welcoming re-openings at a faster rate than previously anticipated, Everi saw revenue decline 70.1 per cent to $38.7m from 2019’s $129.7m, reflecting the impact of casino closures that began in March. Games and fintech segment revenues were $20.8m and $17.9m, respectively.
Everi lauds a number of cost reduction strategies implemented as state mandated casino closures spread, with the response, which came into effect from the second quarter, aiming to reduce cash burn rate.
Net loss for the three month period ending June 30, 2020 finished at $68.5m (2019: +$5.5m), inclusive of $14.8m of pre-tax charges associated with asset write-offs and write-downs, severance, facility consolidation and certain business restructuring costs to streamline operations and improve cost structure. Adjusted EBITDA fell 94.8 per cent to $3.3m from $64.1m.
Michael Rumbolz, CEO of Everi, said: “We achieved better-than-expected results in the second quarter, including a return to positive adjusted EBITDA more quickly than we anticipated at the beginning of the quarter. This was the result of several factors, including the swift actions we took in March when the pandemic struck to reduce our operating costs and preserve liquidity during the time casinos were shut down; as well as our focus on enhancing operational efficiencies and pursuing higher-value opportunities.
“In addition, as our customers began to reopen faster than previously expected, we benefited from our prior investments in technology innovations and game development through the strong performance of our fintech solutions and installed base of recurring-revenue games. As we move through the third quarter, our products and services continue to reflect a return to the performance momentum we were achieving before COVID-19.”
Following the culmination of the quarter, the group’s Everi Digital online gaming division has made a number of strategic growth manoeuvres across North America, with collaborations outlined alongside Loto-Québec and MGM Resorts and GVC Holdings’ Roar Digital joint venture, which will see the firm deepen its New Jersey igaming commitment.
Rumbolz continued by touching upon the firm’s future outlook: “Looking forward, the Everi team continues to focus on helping our customers and prioritising innovation across our portfolio of products and solutions, from game development to cashless funding solutions.
“We are favourably positioned to leverage our industry leadership in cash access funding and self-service player loyalty products to lead the future evolution toward cashless funding and to successfully capitalise on the additional growth opportunities presented by the increased interest from both casino operators and players for cashless and contactless options.”