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Accel Entertainment has announced its financial results for the second quarter of 2024, with revenue totaling $309.4m, a 5.7% increase year-on-year.
This p reportedly exceeded analyst expectations of $301.3m. The company reported a GAAP profit of $0.17 per share, above the anticipated $0.15 per share.
The company’s gross margin rose to 31.1% from 30.1%. The total number of video gaming terminals sold reached 25,757, an increase of 1,998 units.
Accel’s operating profit margin for the quarter was 7.3%, a decrease of 2.6%, reportedly reflecting higher expenses relative to revenue growth.
Accel recently announced the acquisition of Fairmount Holdings, the owner of FanDuel Sportsbook & Horse Racing in Collinsville, Illinois. This $35m transaction, paid in 3.45m ACEL shares, includes an Organisation Gaming Licence, enabling Accel to offer casino gaming and sports wagering.
The acquisition encompasses a racetrack with 65 race days and approximately 435 horse races annually. Accel plans to invest an additional $85-$95m to develop temporary and permanent casino facilities, improve the horse racing experience and enhance food and beverage amenities.
CEO Andy Rubenstein commented: “As we continue to strengthen our core and expand our offerings, we believe we can continue to generate attractive low-teens returns on capital and improve our trading multiples, making Accel a compelling investment opportunity.”
Accel’s net income for the quarter was $14.6m, a 46.1% increase and adjusted EBITDA was $49.7m, up 6.5%. The company’s net debt stood at $311m, representing a 9% increase.
