May 18, 2020 Casino, Online, Land-Based

IGT describes “COVID-19 uncertainty” as Q1 revenue down 18%

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IGT revenue was $940m for the first quarter of 2020, a fall of 18% year-on-year.

Operating loss was $197m, a significant drop from positive operating income of $178m in the previous year’s Q1.

The supplier’s total net loss was $248m, which includes a $296m non-cash goodwill impairment charge.

Adjusted EBITDA was $309m, down 26%.

IGT attributed its decline in revenue mainly to the global closure of casinos and gaming halls as a result of the COVID-19 pandemic, in addition to “widespread mobility restrictions.”

The supplier is withdrawing its previous 2020 outlook as a result of “COVID-19 uncertainty."

According to its trading update, IGT has identified $500m in cost savings to mitigate the effects of casino closures and reduced trade. This includes the temporary reduction of salaries, the cancellation of 2020 salary increases and furloughs.

Marco Sala, IGT CEO, said: "After a solid start in the first two months of the year, we quickly shifted our focus to the global COVID-19 health crisis in March.

“We implemented robust business continuity plans and maintain service levels at our normal, high standards.

"I am grateful for the passion and perseverance the entire IGT team has demonstrated during these unprecedented times and I am confident IGT is well positioned to emerge from the crisis a stronger, even more competitive organization."

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