Accel Entertainment has announced its financial results for the second quarter of 2024, with total revenue reaching $309.4 million, up 5.7% year over year.
The figure reportedly topped analysts' expectations of $301.3 million. The company reported GAAP earnings of $0.17 per share, beating estimates of $0.15.
The company's gross profit margin increased to 31.1% from 30.1%. The total number of video game consoles sold reached 25,757, an increase of 1,998 units.
Accel's operating margin for the quarter was 7.3%, down 2.6%, which it said reflected higher expenses relative to revenue growth.
Accel recently announced the acquisition of Fairmount Holdings, owner of FanDuel Sportsbook & Horse Racing in Collinsville, Illinois. The $35 million deal, paid for 3.45 million ACEL shares, includes an organizational gaming license that enables Accel to offer casino games and sports betting.
The acquisition includes a racecourse with 65 racing days per year and approximately 435 horse races. Accel plans to invest a further $85 million to $95 million to develop temporary and permanent casino facilities, improve the horse racing experience and enhance food and beverage facilities.
Chief Executive Officer Andy Rubenstein commented: "As we continue to strengthen our core business and expand our product offerings, we believe we can continue to generate attractive low-single-digit returns on capital and increase our trading multiple, making Accel a leading Attractive investment opportunity.”
Accel's net income for the quarter was $14.6 million, up 46.1% year over year, and adjusted EBITDA was $49.7 million, up 6.5%. The company's net debt was $311 million, up 9%.
