Q3 results 2020

Cost cutting helps IGT limit Q3 losses

2 minutes read
International Game Technology (IGT) said efforts to reduce costs in the third quarter helped limit the business’s net loss, while a strong performance from its lottery division helped revenue improve from its novel coronavirus (Covid-19)-hit second quarter.

The supplier’s revenue for the three months to 30 September, reported as two core lottery and gaming divisions for the first time, fell 14.9% year-on-year to $981.5m (£743.8m/€832.8m). 

This comprised $880.1m in services revenue, down 4.5%, followed by a sharper drop in product sales, which fell 56.2% to $101.3m.

Looking at the new divisions’ performance, IGT’s global lottery unit enjoyed a relatively strong quarter, with revenue up 3.3% to $570m. The supplier said this was driven by double-digit growth in North America same-store sales, helping to offset a decline in product sales to $20m. 

Global gaming, on the other hand, saw performance weighed down by continued Covid-19 restrictions and venue closures in Q3, despite recovering significantly from a second quarter that covered the first peak of the pandemic.

As such revenue was down 31.4% compared to Q3 2019, at $412m. This comprised $331m in service revenue, with a further $81m coming from product sales. 

Looking at revenue by geography across both divisions, IGT’s Italian operations was the only jurisdiction to report year-on-year growth, with its contribution rising 3.5% to $416m. 

Italy remained the business’s second largest market, however, with North America remaining the leader despite revenue falling 17.7% to $443m. Revenue from the rest of the world, meanwhile, was down 42.3% at $123m. 

The consolidated revenue figure included a $104m contribution from digital betting and gaming revenue, up 40.5%.

“Strong player demand and a host of compelling new games, systems, and digital solutions led to a sharp, sequential improvement in our most important markets,” IGT chief executive Marco Sala said. 

“We continue to monitor the evolution and impact of the pandemic around the world. With a simplified organization firmly in place, we are creating a leaner, stronger IGT.”

Read the full story on iGB North America.