Finance

Everi swings to loss following Covid-19 disruption in 2020

2 minutes read
Casino content and financial technology provider Everi Holdings expects 2020 revenue to fall by up to 27.8% year-on-year, and to post a net loss, after its operations were disrupted by the novel coronavirus (Covid-19) pandemic.

Revenue for the year is projected in the range of between $381m and $385m, with its net loss for the 12 months to fall between $83m and $85m. This marks a significant decline from 2019’s revenue of $533.2m, and a net profit of $16.5m.

The year ended with a fourth quarter which provided further evidence of the supplier’s recovery from the second quarter of 2020, a period when all US casinos were closed as a result of the pandemic. 

Revenue for the three months to 31 December is expected to come between $117m and $121m, an improvement on the third quarter’s $112.1m total. However this still remains down from Q4 2019’s $145.2m figure. 

Net loss for that period, meanwhile, is projected at between $0.3m and $1.4m. While this may surpass the Q3 loss of $0.9m, it factors in approximately $1.5m in charges related to the consolidation of certain facilities and the write-off of certain inventory. 

It also beats Q4 2019’s $4.1m net loss, though this was inflated by a $6.4m pre-tax charge related to the settlement of litigation and $1.6m in additional charges. 

Adjusted earnings before interest, tax, depreciation and amortisation is expected to come between $60m and $62m in Q4. This beat Everi’s Q3 earnings of $59.8m, though falling just below Q4 2019’s $63.2m EBITDA total.

The supplier’s chief executive Michael Rumbolz said the preliminary Q4 results reflected the strength of Everi’s business.

“Even with increased casino closures and further restrictions on certain casino activities in the fourth quarter, the sequential progress of our expected financial and operating results demonstrate the significant improvements to our games and fintech product portfolios over the last several years,” Rumbolz explained.

Read the full story on iGB North America.

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