March 2, 2021 Casino, Online, Land-Based, Lottery

IGT CEO: solid results despite pandemic-impacted year

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Company reports operating loss of $107m in 2020 as revenue dives almost $1 billion from 2019.

International Game Technology PLC on Tuesday reported its financial results for Q4 and full-year 2020.

The company said it had an operating loss of $107m in 2020, compared to operating income of $478m in 2019.

IGT said the 2020 loss was due to the impact of lower revenue, which was $3.12 billion last year, down from $4.03 billion in the prior year.

Global Lottery revenue was $2.16 billion, down just 6% YOY, which the company said demonstrated “remarkable resilience.” Global same-store lottery sales were stable, the company noted, aided by a steep recovery in the second half of 2020.

Global Gaming revenue was $951m, down 45% YOY, as IGT said, “The pandemic caused protracted casino closures and operating restrictions around the world.”

For FY 2020, the company reduced its net debt by $71m. IGT said its net interest expense in 2020 was $398m versus $411m in the prior year, on lower average cost of debt.

The provision for income taxes was just $28m for last year, down from $131m for2019.

“The solid results we achieved for this pandemic-impacted year have given us momentum into 2021,” Marco Sala, CEO of IGT, said in a statement.

Sala said the company made “important strategic progress” as it underwent a comprehensive reorganization to sharpen its focus on its core competencies while it drove efficiencies.

“This provides a clear path to increasing shareholder value as we build on our leadership positions with a stronger revenue and profit growth profile,” Sala said.

The $866m in cash generated by operating activities in 2020 was among the highest level in five years, primarily driven by resilient Global Lottery performance and rigorous cost and invested capital controls, explained Max Chiara, CFO of IGT.

“Liquidity improved more than $300m to more than $2.7 billion,” said Chiara. “As a leaner, stronger company, we expect leverage to return to pre-pandemic levels in the next 12 to 18 months.”

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