That’s a positive, long-ranging catalyst for Everi, because its fintech unit is an increasingly prominent part of its overall business mix.<\/strong><\/p>\n\u201cAbout 54 percent of Everi’s EBITDA comes from gaming and 46 percent from FinTech,\u201d said Fitch. \u201cAbout two-thirds of the gaming revenue is generated on a participation basis, whereby Everi earns fees based on games performance. FinTech revenues mostly come from ATM and cash advance service fees, which are tied to contracts with generally three- and five-year terms and high renewal rates.\u201d<\/p>\n
Fintech Competition<\/h2>\n
While Everi has procured some lucrative cashless gaming contracts with large tribal clients, it doesn’t have a monopoly on that technology in the gaming industry, meaning it must contend with fierce competition. Still, Fitch sees the company meeting that challenge.<\/p>\n
\u201cNew, cashless technologies employed by other participants in the gaming and FinTech industries represent a long-term risk to disintermediate Everi’s cash access services (roughly one-third of total revenues),\u201d according to the research firm. \u201cHowever, the company’s diverse FinTech product portfolio, investments made in new technologies, and its own cashless solutions (including maintenance of money transmitter licenses) reduces this risk.\u201d<\/p>\n
With major gaming markets, including Nevada, embracing electronic payments over hard bills, there’s ample opportunity for Everi to capture a solid market share.<\/p>\n","protected":false},"excerpt":{"rendered":"
Gaming device manufacturer and FinTech purveyor Everi Holdings (NYSE:EVRI) can return to earnings before interest, taxation, depreciation and amortization (EBITDA) levels last seen prior to the coronavirus pandemic late this year, says Fitch Ratings. The research firm made that forecast in a recent report while boosting the Las Vegas-based company’s credit rating to \u201cB+\u201d from […]<\/p>\n","protected":false},"author":46,"featured_media":167350,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,69293],"tags":[],"acf":[],"yoast_head":"\n
Everi Credit Rating Boosted, Helpd by Leverage Target, Fintech Biz<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n