IGT’s earning rise, but demand for new machines remains soft
Despite installation of its server-based gaming systems in several U.S. and foreign casinos, International Game Technology still suffers from weakened demand for its gaming machines.
The company earned $92.1 million for the fiscal third quarter ended June 30 on total revenues of $489 million. This compares to year-earlier figures of profits of $60.6 million on revenues of $517 million.
Product sales revenues in the third quarter decreased 8 percent, and units shipped worldwide decreased 29 percent over the prior year quarter.
IGT shipped 4,100 machines to North American customers from its Reno manufacturing center in the quarter, down from 6,900 in the same quarter last year. Overall it shipped 9,000 units in the quarter.
Revenues from product sales were $63.4 million, down 34 percent from a year ago.
“Our customers continue to spend capital at a conservative pace,” IGT President and CEO Patti Hart said. “We are aggressively managing our cost structure, and we decreased operating expenses by 8 percent.”
IGT says it will continue to focus more on engineering, applications and content.
The total number of its server-based installations reached 14, with four pending installations and many others in contract negotiations, the company said. IGT announced it has installed server-based systems in France, Finland, and Italy, as well as two tribal casinos in the U.S.
The cuts would come as a direct result of reduced tax collections caused by business closures across the Silver State due to the COVID-19 pandemic.