Casino equipment maker and investment (fintech) supplier Everly Holdings posted a first-quarter net profit of $4.6 million on revenue of $189.3 million, down 5.6% year-over-year, according to a press release on Wednesday.
On a sequential basis, the company’s net income increased 142.1% despite a 1.4% decrease in revenue from the previous quarter.
The announcement quoted Everly’s chief executive, Randy Taylor, as saying the company was “making progress” on the proposed merger with International Game Technology Plc’s gaming and digital businesses. The deal is expected to close “late this year or early 2025.”
The CEO added, “We expect this combination to open up our significant growth opportunities. The transaction will bring together a comprehensive and complementary product set focused on our customers and their diverse needs, and we believe it will deliver significant long-term value to our shareholders.”
Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) were US$80.3 million in the three months to March 31, down 13.2% year-over-year.
Revenue from its gaming division, which includes sales of its gaming business and equipment and systems, was flat on a quarterly, sequential basis at $97.1 million in the first quarter, but was down 9.5% year over year.
The company attributed the segment’s results to a “transition to a new range of cabinets and content.”
“About half of the decline in the installation base during the quarter is attributed to the company’s prior decision not to replace cabinets in underperforming locations,” it added
The company sold 1,021 games in the first quarter of the year, compared to 1,546 a year ago.
In October, Everly said it would conduct a “full cabinet refresh” through early 2024, with the new cabinet launching alongside the group’s “most diverse portfolio of new content ever” and showcasing more than 70 new themes across all product categories.
The company launched its “Dynasty Sol” cabinet at the end of 2023, and launched a new “Dynasty Sol Sync” cabinet at a premium at the end of the first quarter of this year.
“These cabinets are expected to continue to gain popularity as new games are introduced,” the company said in an update on Wednesday.
Everi’s CEO acknowledged the group’s transition to a “new cabinet suite” was slower than expected.
However, he added: “We are gaining momentum from these efforts and expect our progress to continue to accelerate throughout the second half of the year.
“Starting in the second quarter, we expect this momentum to lead to an improvement in sequential quarterly revenue,” Mr Taylor said.
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