Specialist
Former Director, Product Strategy at Everi Holdings Inc
Agenda
- Dynamics in today's casino gaming technology solutions industry
- Everi's (NYSE: EVRI) revenue streams and potential headwinds from the coronavirus pandemic
- Cost structure and levers to offset potential liquidity pressure
- Industry rebound scenarios and Everi’s positioning relative to peers
Questions
1.
Could you outline some of the dynamics you’ve been following across the gaming technology and payments industry? What is important and what has surprised you so far?
2.
What were growth expectations for the industry going into 2020? Could you help us understand what that growth trajectory was for the overall industry? How should we think of this in the context of Everi’s fintech vs gaming business?
3.
How should we think about Everi’s fintech peers vs its gaming peers? Who are the key competitors and where does Everi stack up?
4.
Could the fintech player Cardtronics be a complementary business to Everi’s FinTech segment, given that it’s not directly in the casino sector whereas Everi is?
5.
Are other fintech players such as NRT Technologies or Global Payments better or worse positioned vs Everi in any notable areas?
6.
Are there business segments that are high margin vs others that are low margin? How should we think of the debit vs credit transactions, the cash advances and any others that play into these?
7.
How might cashless payment options be adopted in the casino industry? Will that substitute or damage Everi’s other cash-dependent product lines?
8.
Do you think that cashless might be accelerated and become more prevalent as we exit the coronavirus pandemic, given the risk of contagion? You mentioned that it is very novel still and it’s low penetration.
9.
Could the underlying tech of smaller players be substantially better than larger players? Have smaller players engaged in stealing or sharing customers? Are there one or two of the smaller players that we should monitor to understand this better?
10.
How should we think about Everi’s exposure by US state? How substantial is a state such as Oklahoma?
11.
Is Oklahoma vulnerable to a weak energy market? Is that where you perceive the opportunity for some of these players to really focus on?
12.
Can you help us understand who’s winning or losing market share, and anything else we should consider on the gaming front?
13.
Do you think any of the potential relief they’re offering to customers during the current crisis will lead to permanent changes in contract terms or structures?
14.
Is there any specific relief for customers that you’ve noticed Everi enact that may open up opportunities for other competitors to potentially gain share?
15.
Does Everi have any stand-out games that are a must-have? As we think about exiting the coronavirus pandemic, what is the reputation of its offering in the industry?
16.
How would you characterise Everi’s design team or its R&D?
17.
What does Everi need to do to become a top-five player? Can it ever be a top-five player?
18.
What are your concerns over any key R&D development talent departures at Everi? How should we think of the risk given industry furloughs and pay cuts?
19.
Based on what you’ve observed with those departures, through LinkedIn or press releases, are there any players in particular that you would highlight as most exposed or most at risk to losing key talent?
20.
The main product for slot manufacturers is the hardware cabinet and the content/games that are put into those cabinets. What are the typical constraints for one type of cabinet on a slot floor? Is there a maximum number of units for the same type that can be placed on a floor? I understand that this will vary by casino, but what is the number of units on average? How could content reduce this sort of constraint?
21.
How are different types of content used on cabinets? Is that easily interchangeable between cabinets?
22.
How would you characterise the stickiness for fintech business? Is it relatively easy for a fintech customer to switch? Why would they typically switch and what are the switching costs associated with that?
23.
Heading into the coronavirus pandemic, how was price trending for the core payment product? Was it continuing to decline or had it stabilised?
24.
Is there any benefit for a company such as Everi to have a fintech segment and a gaming segment? Is there any advantage vs players that don’t have a fintech segment?
25.
Would you predict any of those top five players getting into fintech through an acquisition, or organically?
26.
What are your views on Everi’s cost structure? How should we think about fixed vs variable costs?
27.
What’s the impact on the cadence of CAPEX for a player such as Everi? How should we think of how Everi is potentially going to cut into CAPEX?
28.
How much of a disadvantage or advantage is having greater exposure to tribal gaming customers in a recovery?
29.
Do you expect any sort of consolidation in gaming, either from Scientific Games, IGT [International Gaming Technology] or generally from the top five?
