- Although IGT reported a net loss in the third quarter, the London-based gaming equipment and slot machine maker made gains with its lottery, digital, and gaming businesses.
- The company reported a net loss of $128 million in the quarter, compared to a net income of $104 million during the same period in 2019.
- Despite the surge in coronavirus cases across the country, company executives said the uptick hasn’t contributed to any softness with IGT’s performance.
- The company’s lottery business hit pre-pandemic levels in the quarter and reached the highest adjusted EBITDA in seven quarters, while revenue for its digital and betting segment climbed 41% over the year to $104 million.
- B2B digital and betting revenue also climbed 70%, most of which came from iGaming.
While International Game Technology (IGT) reported a net loss in the third quarter, the company made gains with its lottery, digital, and gaming businesses.
The London-based gaming equipment and slot machine maker, which has a major presence in Las Vegas and Reno, reported a net loss of $128 million in the third quarter, compared to a net income of $104 million during the same period in 2019. Revenue was down 15% to $982 million.
Despite the rising cases of COVID-19 across the country, company executives said the surge hasn’t contributed to any softness with IGT’s performance.
“While there are still a lot of uncertainties surrounding the pace of recovery around the world, we’re managing through this global pandemic and have demonstrated our ability to adapt to these challenges and deliver solid results,” said Chief Financial Officer Max Chiara.
The company’s lottery business performance hit pre-pandemic levels in the third quarter and reached the highest adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in seven quarters.
During a Thursday morning earnings call, CEO Marco Sala said, “Player interest remained robust as other entertainment options became available again.” He added that “players are enjoying the game, and many expect people playing lottery at higher levels than before COVID.”
IGT’S digital and betting segment also improved during the quarter, with revenue up 41% over the year to $104 million. Currently, the company is powering more than 40 sportsbooks across 15 states in the US.
Executives said IGT is on track to hit the $500 million mark in temporary cost savings and avoidance in 2020. To date, the company has saved approximately $375 million.
B2B digital and betting revenue climbed 70% in the third quarter, with the majority coming from iGaming.
Sala said that online casino betting is a fast-growing business since players are eager to access digital wagering. He added that “the US is the most important emerging market opportunity.”
The company is also planning to implement cashless gaming. IGT has one cashless solution live in the country, as well as a field trial in Silver State. Four others are under contract and are set to begin in the first half of next year.
IGT shares were down 2.5% Thursday morning. They traded at $9.72 on the New York Stock Exchange.