Global Cash Access Holdings, which provides casino cash solutions, reported a year-on-year revenue increase of 42 percent in 15Q2 to $206.4 million.
Games segment revenue rose more than 9 percent, including a 21 percent YoY increase in new unit sales. The company’s payments segment revenue rose 5 percent driven by increases in ATM and Cash Access volumes.
Adjusted earnings before interest, taxes, depreciation, and amortization increased $34.7 million, or 196 percent, to $52.4 million in15Q2 compared to $17.7 million for the same period last year. Adjusted EBITDA included $33.5 million and $18.9 million from the games and payments segments, respectively, for the three months ended June 30, 2015.
“Our second quarter results highlight ongoing positive momentum in both our Games and Payments businesses,” said Ram V. Chary, president and CEO of GCA.
Chary added, however, that there remain challenges impacting growth opportunities for spot buyers including a longer replacement cycle, less new casino openings and continued capital constraints for a number of operators.
“[T]here is a fundamental need to rebrand the company as we better define our broader opportunities to address our customer’s casino for and technology needs,” Chary said.
“Expenses for the rebranding initiative are anticipated cost several million dollars in 2015 with the majority be incurred in the second half of the year. Finally the full year results will also be impacted by our decision to accelerate the timing of a range of growth oriented investments following ongoing customer interactions.”