Everi fintech sales outlook boosted by Covid-19: brokerage
Casino equipment maker and financial technology (fintech) supplier Everi Holdings Inc stands to benefit from its move into the latter segment, now that the global casino industry has to live with Covid-19, says a memo from Roth Capital Partners LLC.
“We continue to believe Everi’s approximately 70-percent casino fintech market share, combined with its technology – significantly beyond ‘account-based wagering’ solutions – and mobile wallet will allow its fintech segment to be revalued,” wrote analyst David Bain.
On Tuesday Everi reported a US$68.5-million loss for the second quarter.
The result was affected by casino closures from March onward in its key markets – including in the United States – due to the Covid-19 pandemic, the firm stated.
Everi has been best-known until recently as a supplier of casino slot machines and customer kiosks for gaming floors.
But Roth Capital had stated in a July note that Everi’s timely adoption and application of the fintech segment for casino-industry use – combined with the advent of the Covid-19 crisis which had further stimulated casino-industry interest in cashless technology – was likely to work in Everi’s favour.
Everi’s fintech “same-store-sales for cash access transactions and volumes are already trending only moderately below last year,” said Mr Roth in his latest memo on the firm.
Referring to commentary by Michael Rumbolz, Everi’s chief executive, and his colleagues, Mr Bain said: “Management cited Covid-19 as a catalyst to demand for contactless and cashless options, including the development of its fully-digital Cashclub Wallet,” a mobile communications-delivered product.
The analyst added that the product “should be live with at least one to two customers by the end of the fourth quarter 2020”.
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