Casino equipment maker and financial (fintech) supplier Avery Holdings reported first-quarter net income of $4.6 million on revenue of $189.3 million, down 5.6% year-over-year, according to a press release Wednesday.

Judging sequentially, the company’s net profit rose 142.1% despite a 1.4% quarter-over-quarter decline in revenue.

The announcement quoted Avery’s chief executive, Randy Taylor, as saying the company was “making progress” on its 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. This transaction will bring together a comprehensive and complementary set of products 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.

Sales in the gaming division, including sales of gaming businesses and equipment and systems, were flat on a quarterly sequential basis at $97.1 million in the first quarter, but were down 9.5% year-over-year.

The company attributed the results of the segment to a “transition to a new suite of cabinets and contents.”

“About half of the decline in the installation base during the quarter is attributable 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 with 1,546 a year ago.

In October, Avery said it would run a “full cabinet refresh” through early 2024, with the new cabinet coming with the group’s “most diverse portfolio of new content ever” and introducing more than 70 new themes across all product categories.

The company launched its “Dynasty Sol” cabinet at the end of 2023 and 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 that the group’s transition to a “new suite of cabinets” 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 Q2, we expect this momentum to lead to a sequential improvement in quarterly revenue,” Taylor noted. “We will continue to support our gaming product portfolio after the proposed merger closes.”

BY: 슬롯사이트

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