Everi CEO outlines plan for revival

Everi CEO outlines plan for revival

Thursday, May 12, 2016 Totally Gaming
Michael Rumbolz has been appointed on a permanent basis

Michael Rumbolz, the new chief executive of Everi, has outlined his plans to revitalise the casino services supplier after it announced a poor performance during the first quarter of 2016.

The industry veteran was confirmed as the head of the company on a permanent basis, after taking the role temporarily following Ram Chary’s departure in February, as Everi reported a significant year-on-year decline in income during the three months to March 31.

The company – formerly Global Cash Access – reported operating income of $3.8m (€3.3m) for the first quarter of 2016 compared to operating income of $28.1m in the prior-year period. Everi said the decline was in part due to a $3.3m payment towards “accrued executive severance costs” while also pointing out that the first quarter of 2015 included a benefit of $14.4m from one-time legal settlement proceeds.

Net income was down from a positive of $500,000 to a loss of $13.2m, while adjusted earnings before interest, tax, depreciation and amortisation dropped from $50.6m to $45.7m. Revenue also fell slightly to $205.8 million from $207.5m.

“While our first quarter results show that much work remains to be done, we are starting to make progress on leveraging our product portfolio, industry expertise and compliance infrastructure to accelerate and maximise long-term company-wide growth opportunities," Rumbolz said.

“Our initial success in these efforts includes: increasing our games and payments product portfolio, adding new distribution capabilities, the ongoing development of new licensed and branded games, and the integration of our games and payments products to provide customers with value-enhancing solutions.”

TotallyGaming.com says: “Analysts believe Everi’s fortunes will rise after overcoming short-term problems and the appointment of Rumbolz on a permanent basis.”

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