The global gaming industry has suffered greatly because of COVID-19, with billion-dollar companies now scrambling to make ends meet. While most will blame their shortfalls on the global pandemic, an argument for lack of prudent planning can be seen clearly. Everi Holdings, a global supplier of gaming and loyalty solutions, has been able to manage its finances well enough that it is already showing almost a complete recovery from the COVID-19 disaster. It has also been able to pay off its debts, while other gaming companies are reaching out to investors to try to secure hundreds of millions of dollars just to stay alive.
Everi just released its latest financial statement for the third quarter, showing considerable strength in its numbers as revenue is up 190% quarter over quarter. While it still reported a net loss, at $900,000, for the period ending September 30, this was much better than the net loss of $68.5 million it saw in the second quarter of the year. Revenue from games and FinTech operations were $38.7 million, but improved to $112.1 million in Q3. This is only off by 16.7% from what was reported for the same period last year, and comes as the world is continuing to struggle with the COVID-19 pandemic.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) also improved from the second quarter to the third. It was up 94.5%, reaching $59.8 million, and included a debt repayment of $35 million Everi had drawn on a revolving credit facility.
Everi CEO Michael Rumbolz said in the statement, “The significant quarterly sequential improvement in revenue, net income, Adjusted EBITDA and Free Cash Flow in the third quarter demonstrates a quicker than previously expected recovery in our results. Our operations strengthened throughout the third quarter, with better performance at the end of the quarter compared to earlier in the quarter. While the future impact of the pandemic remains uncertain, our improved results highlight the resilience and strength of our recurring-revenue streams.