IGT Lauds Lottery Division Strength During Q3

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.”

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About Joe Kizlauskas

Joe is a seasoned iGaming copywriter and speaker who has been in the business since 2015. He's written more words on all elements of iGaming than he likes to remember, and he's contributed material to a number of well-known brands. Joe may be seen playing 5 a side, at the gym or playing games on his Playstation when he is not writing.