IGT lottery growth wiped-out by COVID wrecked global gaming unit
IGT Plc states that it has achieved strategic progress on key corporate directives, assisting with the technology group’s performance recovery once stable trading re-emerges.
Publishing its full-year 2020 results, IGT has recorded corporate revenues of $3.1 billion, down 23% on corresponding FY2019’s results of $4 billion.
Mirroring industry competitors, the NYSE-listed gambling technology group underlines significant COVID-19 headwinds impacting its business units throughout the year.
The protracted closure of land-based casino partners across the globe saw IGT ‘Global Gaming’ units’ full-year revenues almost halved to $951 million (FY2019: $1.7bn).
Mitigating severe gaming unit restrictions, the technology group’s performance would be solely maintained by its ‘Global Lottery’ unit – which delivered strong end of year trading, recording an 11% increase in Q4 revenues to $630 million (Q42019: $568m).
IGT would highlight Q4 2020 as one of the best performing quarters for its lottery division, as it registered a 7% increase in US instant ticket sales and completed contract extensions with the New York, Tennessee and Minnesota lottery agencies.
Global Lotteries strong year-end comeback would see the division record better than anticipated operating income of $642 million (Q42019: $697m).
Nevertheless, reporting an operating loss of $206 million attached to its Global Gaming units, IGT would declare a total group-wide loss of $107 million, compared to operating profits of $478 million the company posted in 2019
Further period developments saw IGT discontinue reporting on its Lottomatica B2C gaming and sportsbook division, having agreed to sell the asset to Italian gambling group, Gamenet SPA, for €950 million.
IGT management continues to monitor the impact of all COVID global developments on its workforce, resources and commercial opportunities.
Entering 2021, IGT has launched its new ‘OPTIMA business efficiency program’ in which the NYSE operator targets group-wide costs savings on $200 million by end of year trading.
“The solid results we achieved for this pandemic-impacted year have given us momentum into 2021. They are a result of the vision, agility, and discipline of the IGT team as well as the distinct advantages of our diverse portfolio,” said Marco Sala, CEO of IGT.
“We also made important strategic progress. The Company undertook a comprehensive reorganization to sharpen our focus on our core competencies and drive structural operational 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.”
Source: SBC News
