IGT reports net loss in 3rd quarter, but online gaming grows

International Game Technology PLC reported a net loss in the third quarter, but the gaming equipment and slot machine manufacturer made gains with its lottery, digital and betting businesses.

The London-based company, which has a major presence in Las Vegas and Reno, reported a net loss of $128 million in the third quarter, compared to net income of $104 million in the same period last year. Revenue was $982 million, down 15 percent.

While COVID-19 cases are climbing across the country, executives said the uptick has not led to any softness with the company’s performance.

“While there are still a lot of uncertainties surrounding the pace of recovery around the world, we’re managing through this global pandemic and have demonstrated our ability to adapt to these challenges and deliver solid results,” Chief Financial Officer Max Chiara said.

IGT’s lottery business performance hit pre-pandemic levels in the third quarter, and reached the highest adjusted earnings before interest, taxes, depreciation, and amortization in seven quarters.

“Player interest remained robust as other entertainment options became available again,” CEO Marco Sala said during a Thursday morning earnings call. “Players are enjoying the game, and many expect people playing lottery at higher levels than before COVID.”

IGT’s digital and betting segment also saw improvements in the quarter, with revenue up 41 percent over the year to $104 million. To date, the company is powering more than 40 U.S. sportsbooks across 15 states.

Company executives said IGT is on track to reach $500 million in temporary cost savings and avoidance in 2020. To date, the company has saved roughly $375 million.

Business-to-business digital and betting revenue was up over 70 percent in the quarter, the majority of which came from iGaming.

“(Online casino betting) is a fast-growing business,” Sala said. “There is no question players are eager for access to digital wagering and the U.S. the most important emerging market opportunity.”

As for cashless gaming, the company said it has a “solid pipeline” of upcoming cashless implements. So far, IGT has one cashless solution live in the U.S., as well as a field trial in Nevada and four others under contract that are set to begin in the first half of 2021.

IGT shares were down 2.5 percent Thursday morning, trading at $9.72 on the New York Stock Exchange.

Contact Bailey Schulz at bschulz@reviewjournal.com. Follow @bailey_schulz on Twitter.