Rise in gaming machine installations helps drive Everi 4Q results

Everi Holdings LLC. built off third-quarter growth and closed out 2020 “guardedly optimistic” for continued growth to start 2021.

The Las Vegas-based financial technology, player loyalty solutions and gaming equipment company reported $1.1 million in net income and $119.6 million in revenues for the final three months of the year, according to Securities and Exchange Commission filings. Both measures increased from the prior three months, which saw a loss of $900,000 in net income and $112.1 million in revenue.

In the last three months of 2019, Everi generated $145.2 million in revenues and lost a net $4.1 million, the company reported.

Executives pointed to a 26 percent year-over-year increase in the number of their premium gaming machines installed at casinos as a factor in their solid fourth quarter.

Additionally, the company reported, two gaming operators began using Everi’s CashClub Wallet mobile wallet during the fourth quarter. Everi CEO Michael Rumbolz told investors on a Tuesday earnings call that the initial response has been “highly positive,” though it was too early in the process to share relevant data.

“Our expectation remains that cashless transactions will increase the total number of transactions performed by patrons, providing yet another growth driver for Everi in the years ahead,” Rumbolz said.

The company’s executive vice president, Darren Simmons, said Everi expects more gaming operators will adopt the mobile wallet program sooner rather than later.

“I think we’ll be surprised, and I think the adoption is going to be stronger than I think what we thought maybe originally,” Simmons said.

Everi is “guardedly optimistic” that revenues in the first three months of 2021 will resemble or slightly outpace those to close out 2020, said Mark Labay, executive vice president and chief financial officer.

Shares of Everi, traded as EVRI on the New York Stock Exchange, closed Tuesday at $14.51.

Contact Mike Shoro at mshoro@reviewjournal.com or 702-387-5290. Follow @mike_shoro on Twitter.