International Game Technology, Plc. reported revenues of $637 million for the second quarter, down some 48 percent from Q2 2019’s $1.24 billion, with its CEO citing Covid-19 shutdown as the reason. Gaming equipment and interactive sales fell 65 percent, with revenues from slots and gaming equipment down by 57 percent.
However, in an earnings call, IGT CEO Marca Sala said the results were better than expected, due mainly to international lottery sales and an aggressive program of cost-cutting.
“Our second-quarter results reflect the intense impact of global lockdowns caused by the pandemic,” Sala said. “Thanks to strong North America lottery performance and our swift adoption of cost-saving and avoidance measures, we delivered better cash flow than we expected back in May.”
The North American lottery performance was down by only 12 percent, although international lottery took a 56 percent hit.
The overall net loss for the company was $282 million, compared to net income of $39 million for the same quarter last year.
“Our resilience is a direct consequence of the diversity of our global portfolio of products and solutions,” Sala said. “The improving trends we are currently seeing are encouraging, but we remain prudent with our planning. Our new organizational structure enhances our readiness to adapt to changes in market conditions.”
The company says cost savings will be a focus for the remainder of 2020. “We have the resources we need to navigate the impact Covid-19 is having on our business, and we are making important, strategic decisions to enhance our operational flexibility,” said CFO Max Chiara on the call. “This includes over $200 million in structural and discretionary cost savings compared to pre-pandemic levels.”
