Cost cutting helps IGT limit Q3 losses
The supplier’s revenue for the three months to 30 September, reported as two core lottery and gaming divisions for the first time, fell 14.9% year-on-year to $981.5m (£743.8m/€832.8m).
This comprised $880.1m in services revenue, down 4.5%, followed by a sharper drop in product sales, which fell 56.2% to $101.3m.
Looking at the new divisions’ performance, IGT’s global lottery unit enjoyed a relatively strong quarter, with revenue up 3.3% to $570m. The supplier said this was driven by double-digit growth in North America same-store sales, helping to offset a decline in product sales to $20m.
Global gaming, on the other hand, saw performance weighed down by continued Covid-19 restrictions and venue closures in Q3, despite recovering significantly from a second quarter that covered the first peak of the pandemic.
As such revenue was down 31.4% compared to Q3 2019, at $412m. This comprised $331m in service revenue, with a further $81m coming from product sales.
Looking at revenue by geography across both divisions, IGT’s Italian operations was the only jurisdiction to report year-on-year growth, with its contribution rising 3.5% to $416m.
Italy remained the business’s second largest market, however, with North America remaining the leader despite revenue falling 17.7% to $443m. Revenue from the rest of the world, meanwhile, was down 42.3% at $123m.
The consolidated revenue figure included a $104m contribution from digital betting and gaming revenue, up 40.5%.
“Strong player demand and a host of compelling new games, systems, and digital solutions led to a sharp, sequential improvement in our most important markets,” IGT chief executive Marco Sala said.
“We continue to monitor the evolution and impact of the pandemic around the world. With a simplified organization firmly in place, we are creating a leaner, stronger IGT.”