The giant for slot machines and other casino games, International Game Technology PLC (IGT), reported the results for the first quarter of 2020. The impact of the blocking measures adopted by the coronavirus COVID-19 pandemic has been reflected there.
The company reported declining revenue across all business segments and its primary revenue streams. Consolidated revenue fell to $ 940 million, 18% less than in 2019. The company’s net loss was $ 248 million, which includes a goodwill (non-monetary) impairment charge of $ 296 million.
Its net loss of 248 million includes an impairment charge for non-monetary goodwill of 296 million. While adjusted EBITDA reached $ 309 million, 26% less than that registered in the same period of the previous year.
Liquidity, on the other hand, was $ 2.2 billion, distributed in $ 1.5 billion in cash without restrictions and another 743 million in revolving credit capacity. As for the net debt of $ 7.17 billion, there was an improvement of 3% ($ 7.38 billion) as of december 31, 2019.
The company’s reduction in sales is directly attributed to the worldwide closure of casinos and gambling halls and the mobility restrictions imposed by the COVID-19 pandemic, according to a company statement.
“After a solid start in the first two months of the year, we quickly shifted our focus to the COVID-19 global health crisis in March. The safety and well-being of our people, customers and communities have been our top priority from day one,” said IGT CEO Marco Sala.
He commented that “solid business continuity plans were implemented and we maintain service levels at our normal high standards. I am grateful for the passion and perseverance that the entire IGT team has shown during these unprecedented times and I am confident that IGT is well positioned to emerge from the crisis as a stronger and even more competitive organization.”
IGT Chief Financial Officer Max Chiara said:
“We have taken swift action on all non-essential costs and are now shifting our focus to structural cost saving initiatives. At the same time, we have taken strict measures to preserve liquidity in the current environment.”
He further noted that:
“Given the uncertainty created by COVID-19, we are withdrawing our previous financial perspectives for 2020, but we are confident that with $ 2.2 billion of liquidity, we are oriented with solid financial flexibility to weather the storm caused by the COVID pandemic- 19 “.