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IGT revenue falls 48.4% in second quarter


The novel coronavirus (Covid-19) pandemic has hit International Game Technology (IGT) hard in the second quarter of 2020, with revenue dropping 48.4% and the business posting a net loss of $279.6m (£214.7m/€237.6m).

Revenue for the three months to 30 June fell to $637.5m, comprising $560.3m in service revenue (down 42.8%), while product sales were down 69.7% at $77.2m.

Looking at revenue by division – for the last time, with financial results to be reported in global lottery and gaming segments from Q3 – IGT’s North American lottery unit was the core source of revenue in Q2. It was also the division that experienced the lowest year-on-year decline in revenue, with its total down just 11.7% to $273m, thanks to lottery revenue dipping marginally, mitigating larger declines in gaming machine revenue.

In contrast, the biggest decline was reported for the North America gaming and interactive segment, which saw its contribution fall 65.0% to $96m. IGT noted that casino closures in the US and Canada hit terminal revenue, while product sales suffered in comparison to particularly high figures for the prior year.

The international division, comprising revenue from all non-North American and Italian operations, also reported a steep drop in revenue, which fell 63.3% to $84m. Again, Covid-19 shut-downs harmed performance, the supplier said, though it added that trends were “progressively improving” as restrictions eased.

In Italy, meanwhile, revenue was down 56.4% at $184m, after machine revenue was impacted by the closure of retail gambling venues. During this period, however, interactive wagers were up 44%, as customers migrated online.

Read the full story on iGB.