IGT announces revenues of $ 3.120 million in 2020

IGT has highlighted the following data for the fourth quarter 2020:

- $ 885 million in revenue compared to $ 1.04 billion in the prior year period
- $ 96 million in operating income compared to $ 40 million in the prior year
- Cash from operating activities of $ 255 million; combined free cash flow of $ 191 million in line with prior year level
- Net loss of $ 220 million, includes $ 155 million of non-monetary exchange losses; Combined Adjusted EBITDA of $ 321 million driven by high earnings stream through Global Lottery same-store sales growth and benefit from cost-saving actions
- The net loss attributable to IGT was $ 242 million compared to $ 168 million, driven by higher non-monetary exchange losses, mainly in debt instruments denominated in euros.
- Adjusted EBITDA of $ 295 million versus $ 365 million in the prior year
- Net debt of $ 7,320 million compared to $ 7,390 million as of December 31, 2019; reduced $ 71 million as reported, $ 433 million excluding the unfavorable impact of foreign currency

While, with regard to the year 2020, it stands out:

- Income from continuing operations was $ 3,120 million compared to $ 4,030 million the previous year.
- Cash from operating activities was $ 866 million and combined free cash flow was $ 576 million, among the highest levels in five years.
- Net debt reduction by $ 71 million as reported, $ 433 million excluding the unfavorable impact of foreign currency
- Global lottery revenue of $ 2.16 billion, down 6%, demonstrating remarkable resilience
- Global gaming revenue was $ 951 million, down 45%, as the pandemic led to prolonged casino closings and operating restrictions around the world.
- Operating loss of $ 107 million compared to operating income of $ 478 million in the prior year period

Regarding consolidated data, IGT mentions

- $ 866 million in cash from operating activities and $ 576 million in combined free cash flow during 2020; Cash flow performance is especially strong in the second half of the year.
- $ 500 million in 2020 temporary cost savings / avoidance
- Launch of the OPtiMa business efficiency program
- New simplified global organizational structure mainly focused on two business segments: Global Lottery and Global Games.
- Agreement to sell Italian B2C gaming businesses for 950 million euros
- In 2020, he signed two-year contract extensions with the New York, Tennessee and Minnesota lotteries; seven-year contract extensions with Western Canada Lottery Corporation and, more recently, with the Jamaica Lottery

Notably, total liquidity increased more than $ 300 million compared to December 31, 2019, due to strong cash flow generation.

Likewise, on December 31, 2020, liquidity totaled $ 2.72 billion, made up of $ 907 million in unrestricted cash and $ 1.82 billion available under revolving credit lines.

Regarding the 2020 financial results, Marco Sala, CEO of IGT, said:

"The solid results we achieved for this pandemic-impacted year have given us momentum into 2021. They are a result of the vision, agility, and discipline of the IGT team as well as the distinct advantages of our diverse portfolio."

"The Company undertook a comprehensive reorganization to sharpen our focus on our core competencies and drive structural operational efficiencies. This provides a clear path to increasing shareholder value as we build on our leadership positions with a stronger revenue and profit growth profile."

On the other hand, Max Chiara, CFO of IGT,

"We generated $ 866 million in cash from operating activities during the year, among the highest level in five years, primarily driven by resilient Global Lottery performance and rigorous cost and invested capital controls."

"Liquidity improved more than $ 300 million to over $ 2.7 billion. As a leaner, stronger Company, we expect leverage to return to pre-pandemic levels in the next 12-18 months."