Accel Entertainment, Inc. reported a notable increase in net revenues for the third quarter and the first nine months of 2024. For the three months ended September 30, 2024, net revenues reached $302.2 million, up 5.1% from $287.5 million in the same period of 2023. For the nine months, revenues totaled $913.5 million, reflecting a 4.6% increase from $873.4 million in the prior year. The growth in revenue was primarily driven by higher net gaming revenues, which increased by 5.8% to $289.9 million in Q3 2024, attributed to an expansion in gaming locations and terminals.
Despite the revenue growth, the company experienced a decline in profitability. Operating income for Q3 2024 was $21.8 million, down 13.0% from $25.1 million in Q3 2023. Similarly, net income for the third quarter fell to $4.9 million, a decrease of 53.2% compared to $10.5 million in the prior year. For the nine-month period, net income was $26.9 million, down 9.2% from $29.6 million in 2023. The decline in profitability was attributed to increased operating expenses, which rose by 6.9% to $280.4 million in Q3 2024, and by 6.6% to $843.4 million for the nine months.
The company’s total operating expenses included significant increases in general and administrative costs, depreciation, and amortization. Notably, depreciation and amortization for Q3 2024 increased by 17.0% to $11.0 million, while general and administrative expenses rose by 6.1% to $47.9 million.
In terms of strategic developments, Accel Entertainment made several acquisitions during the reporting period, including the purchase of assets from Illinois Gaming Entertainment LLC for $13.5 million and the acquisition of BRM Services, Inc. for $1.1 million. The company also announced plans to acquire Fairmount Holdings, Inc. for approximately $35 million, expected to close in Q4 2024, subject to regulatory approvals.
As of September 30, 2024, Accel reported total assets of $950.2 million, an increase from $912.9 million at the end of 2023. The company maintained a strong cash position with $265.1 million in cash and cash equivalents. However, total debt increased to $554.1 million, up from $542.6 million at the end of the previous year, with a weighted average interest rate of approximately 7.6%.
The company also faced increased costs related to higher wages and interest expenses, alongside a recent tax increase on net gaming revenue in Illinois, which rose from 34% to 35%.
About Accel Entertainment, Inc.
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