With the world health crisis hitting the land based casino industry hard, there was little doubt that International Game Technology (IGT) would suffer losses in Q2 of 2020. But with the company now having released an official report, the drop in revenue is perhaps more than many even imagined.
Overall revenue fell by an astonishing 48.4%, with losses posted at around $279.6 million. More specifically, revenue for the 3 months ending on June 30th dropped to a total of $637.5 million. That amount was made up of $560.3 million in casino services revenue, which was down 42.8%, while product sales contributed $77.2 million, which was down 69.7%.
If looking at IGT’s revenue broken down into divisions, it was the North American lottery section that produced the most income for the quarter. It was this division alone that mitigated bigger declines in other areas, such as game machine sales. Still, overall revenue for the North American lottery unit fell, but only by 11.7%, bringing in a total of $273 million.
Meanwhile, the biggest loss was seen in the North American interactive gaming division, which all but entirely flat lined for the quarter. Revenue nosedived by 65%, bringing in just $96 million.
Of course, an IGT spokesperson was quick to explain that the mass closure of casinos in the States and Canada caused this disaster, but would likely see significant recovery after the world health crisis has been brought under control.
Some hoped that international sectors, which include all regions beyond the States and Italy, may have fared a little better. But this was not the case. Internationally the story was more of the same, with revenue falling dramatically by 63.3% to a total of just $84 million.
Even Italian casino operations could not withstand the storm, tumbling 56.4% to a total of $184 million. Though, a spokesperson once again stepped in to offer some perspective, saying that as restrictions were easing across the world, an improvement was already being noted in several divisions.
Marco Sala, chief executive at IGT, was sombre when elaborating on the report. He reiterated that mass casino closures around the world had been devastating to the bottom line, with virtually no department of the company not being impacted in some way.
But he added that the company had also been remarkably resilient, and careful planning and precautionary measures had prevented an even bigger disaster. He concluded by suggesting that as the tide turned back, and the world returned to normal, a bright future still lay ahead.