BUSINESS

Everi quickly changes fortunes as company surges to record profits

TAGs: Everi Holdings Inc

It wasn’t very long ago that many analysts were believing that Everi Holdings, Inc. may find themselves needing to downsize, if not close their doors by the end of 2018. A $51.9 million loss in 2017 posed a bleak future, but that no longer appears to be the case as the company reported a net profit of $12.4 million in revenue for 2018.

Everi quickly changes fortunes as company surges to record profitsIn fact, the success of the company has buoyed their aspirations as the company announced that they would be purchasing casino kiosk provider Atrient for $40 million. It is reported that $20 million will be paid upfront with the remaining balance paid over the next two years.

At the end of 2017, Everi reported that they had a total income of nearly $400 million for the year, resulting in a nearly $52 million loss; however, their gains were 8.3% over that of 2016. Just one year later the total revenue was $470 million, a 14% increase over the numbers for 2017.

The biggest return came from games, but their fintech platforms and technology made up nearly half of the total revenue the company made in 2018, coming in at 44.8%. It is the commitment to both gambling and financial technology that has enabled the company to turn around its fortunes in short order.

As reported back in November 2018, Everi had seen revenue increases occur for 9 straight quarters, now improving to 10 straight. Michael Rumbolz, president and CEO of the company, explained that it was just a matter of time before the company would be able to start to see a significant profit in their overall revenue. It was a commitment to new products and new technology that had the company had staked their hopes on, and this clearly has appeared to work.

Now, Everi Holdings has added Atrient to its overall portfolio. This not only gave them the kiosk technology but also included 50 customer contracts that resulted in over 100 casino locations being added to their customer base. This seems to be an extremely wise move that should help to skyrocket the assent of Everi.

The move was clearly an exciting addition for Rumbolz, who explained that adding the player loyalty platform along with their already lucrative endeavors “enhances the overall value proposition of the FinTech services we provide to our customers.”

This move should not be a surprise. In February, the two companies had announced that they would work together to showcase the latest financial technology solutions at the ICE London Trade Show. While it is not known, it would not be surprising if the two companies joined together for this venture as a prelude to the future acquisition.

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