Global gaming technology solutions supplier International Game Technology (IGT) released today its fourth quarter and full 2020 financial report posting significant drops in both quarterly and annual revenue.
IGT generated in the fourth quarter of 2020 $885 million in total revenue from its Global Lottery and Global Gaming divisions, 15% down compared to the $1.044 billion for the same three-month period in 2019.
The drop in total revenue came from Global Gaming operations as the division accounted for only $255 million in the quarter, nearly half as much as the $476 million posted in the fourth quarter of 2019, and the growth in Global Lottery which posted $630 million in revenue, up 11% year-over-year and its highest in two years, turned out insufficient to offset the negative performance from Global Gaming.
IGT posted in Q4 2020 adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $295 million, down by 19% to the S365 million in the fourth quarter the year before.
Total operating income in Q4 2020 came at $96 million, nearly two-and-a-half times higher compared to the $40 million in Q4 the year prior, mainly due to shrewd management of operating costs.
Corporate support expenses were cut by 20% to $20 million, from $25 million for the same three-month period in 2019, while other expenses were slashed more than 3 times, from $148 million in Q4 2019 to $40 million in the final quarter of 2020.
Driven by higher non-cash foreign exchange losses stemming primarily from Euro-denominated debt instruments, IGT posted for the quarter net loss of $242 million, compared to $168 million in the fourth quarter in 2019. Net loss diluted per share of capital accounted for $1.18, an increase from $0.82 in the same quarter the year prior.
Full Year Report
Total revenue for the full 2020 came out at $3.115 billion, 23% lower than the 2019 full-year result of $4.032 billion, as Global Lottery was not able to contribute to growth, posting a 6% lower result, $2.164 billion, compared to the $2.293 billion in the previous year, while Global Gaming suffered seriously with revenues of $951 million, 45% down from the $1.739 billion the year prior.
The full-year adjusted EBITDA came just above $1 billion, 31% less than the 2019 reading of $1.454 billion, and despite corporate support and other expenses being cut by 28% and 59%, respectively, IGT posted an operating loss of $106 million, compared to an operating profit of $478 million in 2019.
IGT finished 2020 with a net loss of $898 million driven by non-cash foreign exchange losses on Euro-denominated debt instruments and goodwill impairment, $296 million compared to just $99 million in 2019. Net loss for the company which reported it generated more than $4.84 billion of direct economic value in 2019 was only $19 million.
Net loss diluted per share of IGT capital for the year amounted to $4.39, compared to just $0.09 in the year prior.