The second quarter of 2020 is now widely being viewed as a corporate trial by fire, with companies either having managed to weather the world health crisis storm, or risk collapsing under its weight. As far as casinos technology specialist International Game Technology (IGT) are concerned, they have faced the trial and emerged with flying colours.
The company’s second quarter report has finally gone live, and although there were some predictable drops in certain key areas, it is safe to say that IGT have survived. Though, astonishingly enough, the mega-corporation may have even emerged stronger than before, with various safety measures having bolstered sectors that were previously in a slump.
The most striking number on the report was lottery performance in North America. Previously, in May, projections indicated that numbers were likely to be modest, if not low. But better than average revenue, backed by swiftly implemented cost saving measures, saw lottery earnings in the USA souring above expectations.
IGT CEO Marco Sala addressed the results, explaining that diversification had also been one of the company’s primary focuses. He stressed that as far as casino technology was concerned, keeping a broad, constantly evolving portfolio of products in the market was essential. He also pointed at that all markets were now showing a trend of improvement, even beyond the lottery sector in the USA.
Sala concluded that the whole of IGT now had a more agile and adaptable structure than ever before, ensuring that any unexpected casino industry occurrences in the future could be met with unprecedented readiness and flexibility.
Despite good results in the lottery sector, and the assurances from Sala, Q2 still saw devastating numbers in almost all other departments. The one sector that not only survived, but thrived, was online activity, which was boosted by a dramatic 35%.
This was not enough to stop overall revenue plummet, however, which saw a nosedive of 48%. This put the total at $637 million. Gaming revenue faired far worse, with a stunning drop of 72%. Though, of course, this drop is directly related to the closures of several casino establishments around the world.
Conclusions are that the casino corporation did indeed manage to weather the storm, and emerge with a stronger foundation, even if it will likely still be a while before a full recovery is seen.