Impacted by the Covid-19 pandemic, International Game Technology posted a sharp drop in revenue of 48% during the second half of 2020.

The operating performance, which already slowed down in the first quarter of the year, weakened further during the second quarter, in line with expectations. Revenue declined 72%, driven by the closure of casinos and gaming halls, fewer unit shipments, and lower systems and software sales compared to the prior year.

Operating loss was $94 million, down from income of $224 million in the prior year. Global lottery revenue down 26% on reduced traffic to points of sale and temporary game shutdowns in Italy. Gaming and lottery trends improved each month as venues re-opened and restrictions eased.

“Our second quarter results reflect the intense impact of global lockdowns caused by the pandemic,” said Marco Sala, CEO of IGT. “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.”

“Cash generation and liquidity remain our top financial priority,” said Max Chiara, CFO of IGT. “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.”