IGT, the multinational gaming firm that specialises in gambling products such as slot machines and online slots has today announced the release of its second quarter financial figures and business operation results in the midst of a global health crisis.
The results are as expected with some discrepancies, including some better than expected outcomes in certain areas of the business.
It is clear to see that the company has undoubtedly been negatively affected by the Covid-19 pandemic as the firm experienced a net loss of almost 300 million dollars for the second quarter April through June 2020.
Marco Sala of IGT explained some details of what the report shows:
“Our second quarter results reflect the intense impact of global lock-downs caused by the pandemic.
That said, thanks to strong North America Lottery performance and our swift adoption of cost-saving and avoidance measures, we delivered better cash flow than we expected back in May.
Our resilience is a direct consequence of the diversity of our global portfolio of products and solutions. The improving trends we are currently seeing are encouraging, but we remain prudent with our planning.
Our new organizational structure enhances our readiness to adapt to changes in market conditions.”
However, there were some positives to take away from the report as the figures highlighted the true value of IGT’s ‘diverse business portfolio’ as well as global reach across a number gaming categories, such as lottery operations.
Max Chiara added details of the company’s priorities and challenges for the rest of the year:
“Cash generation and liquidity remain our top financial priority. The proactive efficiency initiatives and focused capital markets activity we executed in the quarter have us tracking ahead of plan on all key measures and we expect to deliver positive free cash flow this fiscal year.
We have the resources we need to navigate the impact COVID-19 is having on our business and we are making important, strategic decisions to enhance our operational flexibility.
This includes over $200 million in structural and discretionary cost savings compared to pre-pandemic levels.”
Overall, the gaming giant acted swiftly to mitigate the impact of Coronavirus and the quick decisions by management and executives mean that the firm is on track to achieve ‘$500 million in 2020 cost reduction/avoidance’.
For more information and to read the finer details of the report click here.