Leading Provider IGT Took Covid's Best Shots and Survived Q2 with Flying ColorsPublished August 19, 2020 by Lee R
Drops in revenue across the board from Covid Q were not enough to derail IGT's growth.
Key content and technology gaming provider IGT had quite a tale to tell for Q2 2020, aka the Covid Quarter.
IGT CEO Details
IGT CEO Marco Sala attributed the leading gaming provider's results to the “intense impact of global lockdowns caused by the pandemic."
The perfect storm was met by a strong lottery performance in North America and “swift adoption of cost-saving and avoidance measures” delivered “better than expected cash flow” than was projected in may.
The diversification of the company's global portfolio of products and solutions served to deliver
currently improving trends, with Sala asserting the company was maintaining prudence with planning in light of encouraging signs.
Sala above all praised IGT's newly agile organizational structure that has equipped IGT with enhanced “readiness to adapt to changes in market conditions."
IGT CFO Perspective
IGT CFO Max Chiara further established the top operational priorities of IGT moving forward as “cash generation” and “liquidity,” which are to be pursued through “proactive efficiency initiatives and focused capital markets activity” implemented in Q2 which has fast-tracked projections for key measures for a final result of “positive free cash flow this fiscal year.”
Drops in Revenues
Covid's impact on IGT for Q2 was visible in drops in revenue across all business segments and all primary revenue streams aside from digital activities, which showed a robust 35% increase.
Total revenue was down 48% year-on-year to $637 million for 2020; while global gaming revenue plummeted 72%, impacted by the closure of casinos and gaming halls, reduced shipments, and drops in systems and software sales.
Adjusted EBITDA Unsightly
This and more drops brought adjusted EBITDA down to $168 million from $454 million in 2019.
Rising to the Challenge
IGT benefits were achieved in the conditions of progressive easing of restrictions to which additional cost-saving initiatives were applied to mitigate potential damage.
The recovery of IGT as conditions barreled the company through the quarter indicate that effective management response represents a new triumph for a leading iGaming company in weathering the COVID storm.