International Game Technology PLC (IGT) has published its financial results for the fourth quarter and full-year for the period ended December 31, 2020, declaring a 23% fall in total 2020 revenue.
IGT announced it achieved $3.12bn in total revenue in FY20 compared to FY19’s $4bn. It praised the resilience of its global lottery which included double-digit same-store sales growth in North America in the second half of the year and growing contribution from digital & betting activities.
The company’s global lottery revenue of $2.2bn was only a 6% decrease from the previous year (FY19: $2.3bn), but its global gaming revenue fell by 45% to $951m (FY19: $1.8bn).
In Q4, IGT reported total revenue of $885m, down 15% when compared to the same period in 2019 ($1bn).
However, the period included its highest global lottery revenue and profit performance in two years of $630m, up 11% (2019: $568m). Meanwhile, global gaming fell by 46% to $255m (2019: $476m).
CEO Marco Sala said: “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.
“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.”
IGT highlighted 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 saw the division record better than anticipated operating income of $642m (2019: $697m).
Nevertheless, reporting an operating loss of $206m attached to its global gaming units, IGT declared a total group-wide loss of $107m, compared to operating profits of $478m the company posted the previous year.
Further period developments saw the company discontinue reporting on its Lottomatica B2C gaming and sportsbook division, agreeing to sell the asset to Italian gambling group, Gamenet SPA, for €950m.
IGT management continues to monitor the impact of all COVID global developments on its workforce, resources and commercial opportunities.
Entering 2021, the firm has launched its new ‘OPTIMA business efficiency program’ in which the NYSE operator targets group-wide costs savings on $200m by end of year trading.