International Game Technology (IGT) has posted a sobering set of Q1 financials for the  period ended March 31, 2020. In its investor update, the company declared a tough opening to 2020 trading, reporting that COVID-19 restrictions have impacted ‘all business segments operating all primary revenue streams’.

The headline figures, hardly unsurprising given the industry-wide damage inflicted by COVID-19, represented dire reading matter as the firm recorded an 18% decline in group revenues to $940m (Q12019: $1.14bn)

As a consequence of Mid-march lockdown orders the New York-listed technology group abruptly lost its revenue streams from global casino and gaming hall closures. Further virus impacts, meanwhile, saw its North American and Italian lottery segments record drastic declines in customer transactions through retail point of sale systems.

All IGT core business units comprising North America (-16%), Interactive (-20%), Italy (-36%) and International (-11%) recorded double-digit revenue declines during the trading period. Operating under severe revenue constraints, IGT also posted a group EBITDA decline of 26% to $309m (Q12019: $417m).

In closing its Q1 2020 accounts, IGT reported an operating loss of $197m (Q1 2019: $178m), in part attributed to the firm carrying a $296m goodwill impairment charge, reducing the carrying value of its North American and international units.  

The company also moved to reassure investors, however, saying that the goodwill charge will have no impact on its operations, cash flow, ability to service debt, compliance with financial covenants, or underlying liquidity.

Further key metrics saw IGT continuing its stated objective of reducing long-term corporate debt which stands at  $7.1bn (Q12019: $7.7bn).

CEO Marco Sala stated: “After a solid start in the first two months of the year, we quickly shifted our focus to the global COVID-19 health crisis in March. The safety and well-being of our people, customers, and communities have been our highest priority since day one.

“We implemented robust business continuity plans and maintain service levels at our normal, high standards. I am grateful for the passion and perseverance the entire IGT team has demonstrated during these unprecedented times and I am confident IGT is well positioned to emerge from the crisis a stronger, even more competitive organization.”

CFO Max Chiara commented: “We’ve taken swift actions across all non-essential costs and are now switching our focus to structural cost savings initiatives. At the same time, we have adopted strict measures to preserve liquidity in the current environment. Given the uncertainty created by COVID-19, we are withdrawing our previous financial outlook for 2020, but we are confident that with $2.2bn of liquidity, we are geared with sound financial flexibility to weather the storm caused by the COVID-19 pandemic.”