Accel Entertainment Reports 5.7% Revenue Growth for Q2 2024
Date: 2024-08-01 Author: Alex Crawford Categories: PAYMENT SOLUTIONS
Accel Entertainment reported its Q2 2024 financial results, showing an impressive 5.7% revenue growth. Total revenue came in at $309.4 million, up 5.7% year-over-year. This result beat analysts’ expectations of $301.3 million.
The company also reported GAAP earnings of $0.17 per share, above the $0.15 per share estimate. Gross margin increased to 31.1% from 30.1%. Total number of gaming terminals sold reached 25,757, up 1,998 units year-over-year.
Operating Income and Expenses
The company's operating margin for the quarter was 7.3%, down 2.6% year-over-year. The decline was due to higher expenses that were not fully offset by revenue growth.
Accel Entertainment recently announced the acquisition of Collinsville, Illinois-based Fairmount Holdings, owner of FanDuel Sportsbook & Horse Racing. The $35 million deal, paid for by 3.45 million ACEL shares, includes an Organisation Gaming license, which will allow the company to expand its gambling and sports betting offerings.
The acquisition includes a racetrack with 65 racing days and approximately 435 races annually. As part of the transaction, Accel plans to invest an additional $85-$95 million to develop temporary and permanent casinos, enhance the racing experience, and improve the food and beverage experience for customers.
Outlook and Investment Appeal
Accel Entertainment CEO Andy Rubenstein commented on the results: “We continue to strengthen our foundation and expand our offerings, and believe we can generate attractive returns on equity in the low 10s. We also expect our trading multiples to improve, making Accel an attractive investment opportunity.”
Accel’s net income for the quarter was $14.6 million, up 46.1% year-over-year. Adjusted EBITDA increased 6.5% to $49.7 million. The company’s net debt was $311 million, up 9% year-over-year.
As a result, Accel Entertainment is demonstrating sustainable growth and successful execution of its strategy, despite some challenges. The company continues to expand its market presence and invest in new opportunities, which experts say makes it a promising investment for the future.
