Global gaming giant International Game Technology recorded a net loss of US$128 million in the three months to 30 September 2020, down from a profit of US$104 million in 3Q19 but vastly improved from a loss of US$280 million in the second quarter.
Publishing its 3Q20 results early Thursday (Asia time), IGT said its US$128 million loss was entirely attributable to foreign exchange losses, mostly non-cash, which totaled US$149 million. Notably, revenue for the quarter, while down 15% year-on-year to US$982 million, was 54.2% higher sequentially driven by a 3% year-on-year increase in global lottery sales to US$570 million – the strongest growth in seven quarters.
Global gaming revenue fell 31% year-on-year to US$412 million.
Adjusted EBITDA fell 13% year-on-year to US$354 million, up from US$168 million in the second quarter as the industry continues to recover from the COVID-19 pandemic.
“Robust cash flow generation during the quarter and year-to-date periods have enabled us to improve our liquidity and reduce net debt,” said IGT’s Chief Financial Officer Max Chiara, after the company reduced its net debt by US$46 million to US$7.24 billion.
“We are on track to achieve our 2020 temporary cost-reduction targets and have identified a number of initiatives that will enable us to deliver over US$200 million of structural savings over the next two years. As a result, the improvement in our profitability should support our continued focus on reducing debt.”
IGT CEO Marco Sala said the release of new games, systems and digital solutions led to a “sharp, sequential improvement in our most important markets.
“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,” Sala said.
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