Gaming and financial technology business Everi saw revenue drop 28.8% to $383.7m in 2020 after seeing revenue from all channels decline, including a sharp drop in gaming equipment and system sales.
Within the gaming segment, revenue from gaming operations were down 17.3% to $156.2m. However, gaming equipment and system sales dropped 51.6% to $44.0m, while other revenue dropped 97.1% to just $96,000.
Revenue from its fintech division also declined, by 26.8% to $183.4m. Most of this came from cash access services, which brought in $112.0m, down 32.0%. Fintech equipment brought in $24.3m, down 35.9%, while information services and other fintech revenue ticked down by 1.1% to $47.0m.
Expenses also declined, by 11.6%, but were higher than revenue at $389.1m.
Everi’s costs of revenue came to $65.8m, of which $41.3m was from gaming and $24.5m from fintech.
The business paid an additional $152.5m in operating expenses, down 5.9%; $27.9m on research and development, down 14.2%; $67.5m on depreciation expenses and $75.3m on amortisation costs.
As a result of these expenses, Everi made a loss of $5.4m, after a $94.0m profit in 2019.
““Throughout 2020, we met every challenge, demonstrating Everi’s dedication and unwavering commitment to provide our customers and their patrons with exceptional products and services. I could not be prouder of the entire Everi Team,” Everi chief executive Michael Rumbolz said.
Everi’s interest expenses came to $74.6m, while it paid an additional $7.5m in extinguishment of debt, resulting in a pre-tax loss of $87.4m, compared to a $16.0m profit in 2019.
After a $5.8m tax benefit, Everi lost $81.7m, having made a $16.5m profit the year prior.
Looking only at the fourth quarter of the year, the business made $64.9m from gaming, down 15.8% and $54.6m from fintech, down 19.8%, for $119.6m overall, a 17.7% decline.
After expenses of $102.4m, down 21.0%, Everi’s operating income was $17.1m, up 7.5%.
Including interest costs of $18.3m, Everi made a loss of $1.2m, which was 38.0% less than 2019’s loss.
Following a $2.3m income tax benefit, Everi made a profit of $1.1m, compared to a $4.1m loss the year before.
“The quarterly sequential increase in revenues, net income and Adjusted EBITDA achieved in the fourth quarter reflects the strength and balance of our businesses, in particular our significant percentage of higher-margin recurring revenues, and our track record of consistent operating execution,” Rumbolz said.