The strength of its lottery division has been lauded by International Game Technology, as the effects of the ongoing COVID-19 pandemic continues to be felt in the third quarter of the year.
During the time, revenue declined 15 percent from $1.15bn to $982m, with the global lottery division of the business coming in at $570m up three percent and powered by double-digit growth in same-store sales in North America.
Revenues totaled $412 million across the company’s global gaming division, a 31 percent decrease from $601 million, attributable to pandemic-related closures and restrictions, but the group noted positive sequential developments as casinos reopened and an installed base that is steadily reactivating.
Marco Sala, CEO of IGT said: “The resilience of our portfolio, particularly in lottery, and benefits from our swift cost reduction initiatives are on full display in our third quarter results.
“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.
“We continue to monitor the evolution and impact of the pandemic around the world. With a simplified organisation firmly in place, we are creating a leaner, stronger IGT.”
Operating income of $129 million for the quarter ending September 30, 2020 reflects a 16 percent year-on-year decrease compared to $154 million for the quarter ending September 30, 2020, which IGT aligns with disciplined cost saving measures and increases in same-store lottery sales.
Net losses fell from a profit of $104 million a year ago to $128 million during the third quarter, as adjusted EBITDA decreased by 13 percent to $354 million (2019: $407 million), with cost cutting actions and global lottery once again earning praise.
Max Chiara, CFO of IGT added: “Robust cash flow generation during the quarter and year-to-date periods have enabled us to improve our liquidity and reduce net debt.
“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 $200m of structural savings over the next two years. As a result, the improvement in our profitability should support our continued focus on reducing debt.”