Gaming solutions supplier and operator Intralot has provided a business update in regard to the financial impact being felt due to the ongoing COVID-19 global health crisis.
Discussing the gaming business, Intralot stated that according to H2GC data, the current outlook for the industry indicates that the global GGR for 2020 is expected to fall between 2013 and 2012 levels, around $400bn.
This drop sees the global GGR drop by 15% when compared to the estimate that was given prior to the COVID-19 outbreak, thus reflecting a significant impact felt as a result of the postponement or cancelation of major sporting events and competitions globally.
A statement released by Intralot read: “The health and safety of our team is of paramount importance. Since early March 2020, INTRALOT has responded to the environment presented by COVID-19 by activating its WLA certified Business Continuity Plan and by using technology in order to immediately enable about 80% of its personnel to work remotely, respecting public authorities’ instructions and protecting the health and safety of its personnel, thus preserving business continuity for its customers.
“However, some delays may be experienced in the product roadmap and in the production of new hardware equipment in Asia or other disruptions in the supply chain from third parties.”
The update goes on to suggest that the main sources of impact on the company have come as a direct consequence of lockdowns, store closures, and the lack of sports betting content.
Moreover, Intralot also revealed that group subsidiaries have applied for governmental support programs related to personnel furloughs in Australia and Malta while further mitigation measures are being taken in all operations on a risk-based approach, resulting in estimated deferral in Capex in the vicinity of €13m and reductions in Opex in the vicinity of €15m in 2020.
The statement concluded: “We currently expect that the crisis impact on Group GGR will peak in April and May 2020 and we assume a gradual return to near budget figures by November/December 2020 as activity potentially rebounds from June 2020 onwards.
“The company is constantly reviewing the situation in order to protect the safety of its employees and the integrity of its operation and will offer updates when conditions change materially.”
