• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

IGT 2Q revenue halved, CEO flags ‘improving trends’

Aug 05, 2020 Newsdesk Latest News, Top of the deck, World  


IGT 2Q revenue halved, CEO flags ‘improving trends’

Gaming and lottery provider International Game Technology Plc (IGT) reported on Tuesday revenue of nearly US$637.5 million for the second quarter of 2020, down 48.4 percent from the prior-year period. The company flagged additional cost-saving measures, but said that “improving trends” in the group’s business were “encouraging”.

IGT posted a net loss attributable to shareholders of just above US$279.6 million, compared to a nearly US$4.9-million profit in the corresponding period a year earlier, according to a Tuesday press release.

For the three months ending June 30, adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 62.9 percent year-on-year, to US$168.4 million.

The release quoted IGT’s chief executive, Marco Sala, as saying that the group’s second-quarter results reflected the “intense impact of global lockdowns” caused by the Covid-19 pandemic. The ongoing public health crisis has led to casino shutdowns in a number of jurisdictions, including in markets in the United States, Australia and the Asia-Pacific region.

“Thanks to strong North America lottery performance and our swift adoption of cost-saving and [cost-] avoidance measures, we delivered better cash flow than we expected back in May. Our resilience is a direct consequence of the diversity of our global portfolio of products and solutions,” stated Mr Sala.

He added: “The improving trends we are currently seeing are encouraging, but we remain prudent with our planning. Our new organisational structure enhances our readiness to adapt to changes in market conditions.”

IGT said the group’s liquidity and net debt improved on positive cash flow performance during the second quarter. The company said it generated US$167.8 million in cash from operating activities and nearly US$107.4 million in free cash flow in the three months to June 30. That compares with US$445.1 million in cash from operating activities and US$333.3 million in free cash flow a year ago.

The group said its revenue for the reporting period was down “across all business segments and all primary revenue streams except for digital activities, where revenue increased 35 percent.”

It added that “progressive easing of restrictions” relating to Covid-19 during the quarter and “cost-saving initiatives, helped mitigate the impact”.

IGT said its global gaming revenue declined by 72 percent, “driven by the closure of casinos and gaming halls, fewer unit shipments, and lower systems and software sales compared to the prior year”. The firm’s global lottery revenue was down 26 percent from a year earlier.

“Gaming and lottery trends improved each month as venues reopened and restrictions eased,” said the group.

Lower sales, additional savings

IGT’s international division – including Asia – generated quarterly gaming revenue of US$21 million, down 85.2 percent from a year earlier. Revenue from gaming product sales fell by 92.1 percent year-on-year, to US$9 million; revenue from gaming services was down 57.1 percent, to US$12 million.

The company said there was a 95.9-percent decrease year-on-year in the number of machines it shipped to international markets last quarter, to 269 units. Its installed base of slot machines in casinos within international markets during the second quarter shrank by 3.1 percent in year-on-year terms, to 9,724.

IGT said it continued to implement its cost-reduction plan amid the coronavirus pandemic to target US$500 million in aggregate savings in 2020.

In Monday’s release, IGT said also it had identified an additional US$200 million in “structural cost savings” compared to pre-pandemic levels.

The additional savings are mostly expected in 2021, the group said. They include: eliminating “duplicative functions” and streamlining back-office activities; optimising the global investment in technology “to focus on value-accretive know-how”; rationalising research and development; and optimising its supply chain “for maximum cost efficiency”.

At June 30, IGT’s liquidity amounted to US$2.3 billion, via US$1.3 billion in unrestricted cash and US$1.0 billion available under revolving credit facilities. The company completed recently the sale of US$750-million in 5.25-percent senior secured notes due in 2029. About US$500 million of the net proceeds were used to fund a partial tender of 6.25-percent notes due in 2022.

Max Chiara, chief financial officer of IGT, said cash generation and liquidity remained IGT’s “top financial priority.”

He added: “The proactive efficiency initiatives and focused capital-markets activity we executed in the quarter have us tracking ahead of plan on all key measures and we expect to deliver positive free cash flow this fiscal year.”

The company’s net debt position stood at US$7.29 billion as at the end of the second quarter, up from US$7.17 billion in the previous quarter, but down from US$7.38 billion as of December 31.


  • tweet
Related articles
  • ‘See before you play’ slot marketing tool, say tech suppliers
    ‘See before you play’ slot...

    May 31, 2023  

  • IGT flags route to high-performing games for Asia
    IGT flags route to high-performing...

    May 30, 2023  

More news
  • iGaming growing in Asia, ops tackling challenges: Uplatform
    iGaming growing in Asia, ops tackling...

    May 31, 2023  

  • Thailand still a watch and wait: LVS chairman
    Thailand still a watch and wait: LVS...

    May 31, 2023  


Latest News

iGaming growing in Asia, ops tackling challenges: Uplatform

iGaming growing in Asia, ops tackling challenges: Uplatform

May 31, 2023  

The iGaming segment in Asia “has grown rapidly” since the onset of the Covid-19 pandemic in early 2020, says Rakhi Jaimini (pictured), sales manager at sports betting and online casino operating...
Read More
Thailand still a watch and wait: LVS chairman

Thailand still a watch and wait: LVS chairman

May 31, 2023  

G2E Asia 2023: Singapore

  • iGaming growing in Asia, ops tackling challenges: Uplatform
    iGaming growing in Asia, ops tackling challenges: Uplatform

    May 31, 2023  

    The iGaming segment in Asia “has grown rapidly” since...
  • ‘See before you play’ slot marketing tool, say tech suppliers
    ‘See before you play’ slot marketing tool, say tech...

    May 31, 2023  

    Showing slot machine players – via animations on the...
  • Macau stocks tied to China outlook: Bloomberg analyst
    Macau stocks tied to China outlook: Bloomberg analyst

    May 31, 2023  

    Macau stocks in likelihood “have been punished too much...
  • Investors still eye possible fresh IR locations in Japan: scholar
    Investors still eye possible fresh IR locations in Japan:...

    May 31, 2023  

    There are foreign companies still interested in investing...
  • Thai casino law possible in 2024, IR in 2030: govt adviser
    Thai casino law possible in 2024, IR in 2030: govt adviser

    May 31, 2023  

    Thailand could pass the necessary enabling legislation for...
  • China still ‘critical’ to Asian markets: G2E Asia panel
    China still ‘critical’ to Asian markets: G2E Asia panel

    May 30, 2023  

    China will remain a key market for Asian gaming...
  • Much interest in state casinos sale, says Pagcor boss Tengco
    Much interest in state casinos sale, says Pagcor boss

    May 30, 2023  

    Alejandro Tengco (pictured in a file photo), chairman and...
  • Gaming industry in for a very exciting period: Bill Miller
    Gaming industry in for a very exciting period: Bill Miller

    May 30, 2023  

    There are “plenty of reasons” for the global gaming...
  • IGT flags route to high-performing games for Asia
    IGT flags route to high-performing games for Asia

    May 30, 2023  

    Gaming equipment provider International Game Technology Plc...
  • G2E Singapore trade show, conference begins today
    G2E Singapore trade show, conference begins today

    May 30, 2023  

    The Global Gaming Expo (G2E) Asia 2023 Special Edition:...
  • Novomatic’s Black Edition II cabinets at G2E in Singapore
    Novomatic’s Black Edition II cabinets at G2E in Singapore

    May 29, 2023  

    Austria-based gaming equipment maker and operator Novomatic...
  • Uplatform to show latest iGaming products at G2E Singapore
    Uplatform to show latest iGaming products at G2E Singapore

    May 25, 2023  

    Sports betting and online casino operating platform...
  • L&W ambition to be No1 in Asia well on its way: SVP gaming
    L&W ambition to be No1 in Asia well on its way: SVP...

    May 24, 2023  

    The business performance in Asia of gaming content and...
  • G2E Singapore expecting 6k visitors, 100+ exhibitors
    G2E Singapore expecting 6k visitors, 100+ exhibitors

    May 18, 2023  

    The organisers of Global Gaming Expo (G2E) Asia 2023...
  • ‘Dragon Unleashed’ slot link by L&W at G2E in Singapore
    ‘Dragon Unleashed’ slot link by L&W at G2E in...

    May 17, 2023  

    Gaming content and equipment supplier Light & Wonder...
  • Sega Sammy Creation new multi-ETG at G2E in Singapore
    Sega Sammy Creation new multi-ETG at G2E in Singapore

    May 16, 2023  

    Casino equipment maker Sega Sammy Creation Inc is to...
  • Aristocrat at G2E Asia in Singapore previews Year of Dragon
    Aristocrat at G2E Asia in Singapore previews Year of Dragon

    May 09, 2023  

    Casino slot machine and digital gaming content provider...
  • IGT ‘Prosperity’ link in Asia show debut G2E in Singapore
    IGT ‘Prosperity’ link in Asia show debut G2E in...

    May 05, 2023  

    The Global Gaming Expo (G2E) Asia event in Singapore is the...
  • Thai parliament adviser on casinos attending G2E Singapore
    Thai parliament adviser on casinos attending G2E Singapore

    May 04, 2023  

    An adviser to a Thailand parliamentary committee mulling...

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”[Macau casino] operators may want to remain prudent in not appearing to reward shareholders too early”

DS Kim

Head of Asia gaming and leisure research at JP Morgan Securities (Asia Pacific)



Most Popular

  • Dividend restart still far for Macau ops: JP MorganDividend restart still far for Macau ops: JP Morgan May 30, 2023
  • We’ll be in Singapore for many years: LVS chairmanWe’ll be in Singapore for many years: LVS chairman May 30, 2023
  • Macau stocks tied to China outlook: Bloomberg analystMacau stocks tied to China outlook: Bloomberg analyst May 31, 2023

Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us