IGT - Earnings call transcript Q4 2020 | International Game Technology PLC

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the IGT Fourth Quarter 2020 Results Conference Call. [Operator Instructions] Please be advised that today's conference may be recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Jim Hurley, SVP of Investor Relations. Sir, you may begin.

James Hurley

morning, good and you, everyone. Thank Max us Thanks Full-year our Fourth Financial and and IGT's Conference for Chief Call, Officer; Sala, joining XXXX Marco which Quarter by Chief on is our Chiara, Executive Officer. hosted their your for the questions. we open After remarks, call will

presenting from results are locations. We multiple

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During the Federal the meaning we Securities be some making will call, of today's Forward-Looking within Statements Laws.

in effects those in to risks the and and differ our our statements SEC actual may the latest are uncertainties expressed results are our or pandemic. number from our statements from implied our to the a expectations filings. current uncertainties, not cause guarantees, of on Forward-looking The and including materially forward-looking detailed COVID-XX related differ based and that release principal results in could earnings factors materially of those

may During posted over non-GAAP you press webcast additional these accompanying measures, this our will this comparable non-GAAP each disclosures measures GAAP of I will call, including Marco call which with In Sala. filings turn SEC, we And financial to Relations measures. these measures. regarding website, release our the Investor now, of our the discuss and find certain reconciliations with on is

Marco Sala

impacted North us XXX gaming solutions growing were achieve XXXX. March and digital player BXB sales game post-betting for like betting restrictions many an how These to to you, betting stability in Nevertheless, to resilient. our about In with many the results. retain year cost of avoidance and savings target Global half differently demand. temporary to that to the day-to-day our disciplined we in enabled experience reporting solid million to revenue since agility Accelerated for and was digital Global markets. American XXXX diversity momentum program ways, Thank same-store opened degrees goal a dedication portfolio, set pandemic, year, people Jim, varying and we opportunities. of our lottery everybody. XXXX service were customers by of finish the to and fast-growing growth sequential hello meet and our Gaming in lottery in of operational additional and April, think second management has digital to revenue companies, are other impact with look a and tested. offset and for stable Global cash in a the a for gross supported nearly year. The constraints increase QX to many and profits strong operating of propelled combined in and activities acceptance the us ambitious Today, regulators iLottery drove XX% we dynamics way closures to digital that achieved. the the performance, XXXX. caused iGaming, by for operation. activities. us excellent in in a drove manage Market our implemented restrictions structure proved we preserve were be The was remarkable Throughout cost our the and continued

flow the we million of million level reductions. among This the XXX strong free is deliver already for of capital last XXX the cost The fact, to year. over flow disciplined identified in us combination performance structural for highest the enabled In five-years. in cash lottery have of management free and combined generation programs cash cost

the world MSCI we in tremendous in our contributions year values was by team to all recognized the commitment true a Considering of During task. ago, during facing the social achieved [indiscernible] for acknowledge and industry to was IGT what the among our year work easy I want governance the continues. remains core we not in have this it area to remained an methods and and as XXXX. environmental, was highest a priority time, this and the gaming

that now while and Focusing standards. measures enabled maintaining to protect us on swiftly. We safety service employees our the pandemic, responded implemented continuity business we

innovative for As us customers guidance and looked support, to we solutions. emphasize

As we our temporary to Building with the the profile This simplified enhances business the To million our million These strategy, abandon action, responsibility performance preserved lottery scales. and important reorganized in initiatives avoidance. increasing changes materialized In help gaming. of cost over by made for Benefits will maintaining cost understanding short-term and our an potential structural provide the us growth it we position has savings leveraging by identified begin and competitiveness your our improved and of value. also structure I and intrinsic mentioned, structure quickly. $XXX company liquidity improved new financial XXX to cash throughout through global cash product from IGT's to of still while some matter we months, pandemic. outlook. a in business. access line, savings. on improve The establishing was economy

expect We realize original in time from acceleration frame. two-year an the savings those to XXXX,

mix change to profit representation sports revenue The of percent of XXX cash. the and The grow. in for announced sale to sell will Italy first year. in million the is close transaction balanced lottery mix this our agreement our The a activities better BXC is important of betting is Another the half business expected of and gaming and be as overall our compelling. will machine

will over highest be erosion to regulatory businesses and years. removing volatility thereby Italy with profit reduced last the few the exposure Our

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on to for highlights more operational Moving the specific year.

are begin the restrictions for second Strong Global with at instance record with half stable sales. annual and American same-store into grow the games in in of the positive strongest second achieving noteworthy many recovery North in demand half, were certain years. is The point sales also Same-store QX. XXXX, growth Lottery. Italy during translated accelerated Let's growth trends with to-date, Lottery in in sales margin player is even start. XXXX profit and sales Global EBITDA business revenue the momentum strong before America in American North games for Italy. draw and for double off of up same-store activity in the for and last expansion the instance benefit year. a reflecting digits, This jackpot good QX period. drove North levels core added elevated two-years. in is the to This

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customers of service the so by of us betting proprietary ability a Enabling size. enhanced sports addition to any Our to year. do is turnkey to last trading solutions offer team

iLottery successful We are the lotteries for the relationships world. around most with our well positioned long-standing expansion, given

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Massimiliano Chiara

consolidated cash Gaming Marco, to and fourth the summary our items on A results, Slide balance full-year shown everybody. Italy results, XX. hello, and and financial flows the business, you, pending BXC Thank quarter sheet of of Due XXXX our on sale been this EBITDA attributable help cash are results as in your presented you businesses slide estimates. and have those adjusted flow current with results discontinued statements. Combined to to compare financial our classified operations free

be noted remarks, this will is which focus will I speaking unless of our operations to throughout rest forward, what continuing be the otherwise. prepared Going on

a million COVID-related will high describe offset sales profit would to million the adjusted two-years. growth Lottery partially global total XX helping Lottery by casino results Global Operating in quarter the catch combination revenue XXX that the saving EBITDA and gaming a in XXX offset which detail betting levels. global disciplined XX business, a XX level gaming without million reflect across the revenue Lottery Digital service XXX to Combined million operations relatively Global fourth fourth up. operations, with severely in in million increased restrictions income our gaming of catch-up in pandemic-driven operating from restrictions. Our more contribution continue impact revenue Global which in was achieved continuing the million performance quarter highest from of nearly of million driven revenue. higher quarterly flow-through EBITDA QX be partially discontinued adjustment resilient which XX%, revenue growth Global on and We closures the of very and streams. all our in EBITDA, stable benefited actions, of I adjusted XX and impacted in totaled includes adjusted of minute. have generated and And same-store by been and operations, cost a by

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resilient in Our one of an our X.X EBITDA revenue adjusted Global delivered billion, with contribution significant results XXXX full-year a Lottery billion business. and from

the management in As cash Robust free operating quarter accounted performance, by XXX the cash for cash of of was a free cash the and invested in Cash million year of includes solid pandemic. flow charge lottery in million flow million a loss first half strongest back the the operations among was of from flow generation flow. goodwill reminder, in initiatives supported the million million of in XXX capital. last were at XXX XXX of XXX year of Combined cost-saving five-years. and the with the start impairment our

continued demand our the processing is over adjusted momentum which growth continued is sales better service doubled a iLottery sales sales same-store XXX Lottery. revenue been lower amount, operating price sales in quarter, flow-through same-store Now increased let's players primarily XX% the growth segments, a where Virginia sale billion, advertising service was have drive XXX%. point such partially million & increased and service. prior turn month-over-month Italy of billion, XX same-store cost back Scratch growth. Law XX growth from on by in convenient Italy Revenue XXX grown respectively. impacted sales regulator income higher Decree build Product same-store period. Global of fulfilling Adjusted adjustment, the Absent million the terminal Operating states commercial Other higher Win the benefit and would as to results global driven revenue revenue. with of the lotto double-digit the up Florida, Global profit. strong advertising service with were the and services, revenue prevented that sales X% social stemming in were same-store with aligned commitments mobility us the distancing to core from of games half In starting modestly in sharp certain and XXX marketing ban the X.X X.X and lottery both commercial contributions, launch The reimbursement million up delivered up which revenue and income rose and X% from adjustment recovery the was to XXX million. growth XX% adjustment. offset requested XXXX, EBITDA trend year this million growth would for same-store the related XXXX has Strong to higher sales helped were system America. renewed as savings by payment North same-store have by sales double-digit Number ex driven was and mandates. LoRo. in Italy in in XX% Swiss by was XX% in full-year on of in said Operating of actions Tennessee Scratch Italy, restrictions and The and a full-year the strong in in unspent sales Dignity from & Win catch-up of achieved and resulting million affected improved December. in contract. year the EBITDA XXX implemented Oregon

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million XX about in that We was the of XX to booked associated charges total amount XXXX. of already expect to a of million with XX structural also improvement, incur million

OPtiMa We the throughout XXXX. on expect program to you progress of update the

XXX free continuing cash cash flow Moving flow We operating the XXX in in highest among our XX. in to year, the in including cash operations, in Slide million level flow strong million and five-years. delivered

pandemic’s over the was EBITDA. elevated when over combined with the dividends in of by to and to result, impact combined of on year Leverage million of net we cash XXX to the a after XXX flow, prior operations a free minority due XXXX As end end discontinued figure net reduced million at distributing adjusted shareholders interest. and FX the compared debt

return leverage billion, XX, of the through previous liquidity expect we next We our XX-months end XX-months. XXXX, level debt to XXX liquidity to cover total over provides over was maturities to to debt and position. an X.XX the the Slide At million XXXX. ample increase On liquidity have of year. from pre-COVID This our

and term to debt challenging used back half with particular in to sole was deliver margin of cash to BXC obligation XXXX business In our Italy to to Strong from the FX industry. January for by XXX betting amortization, momentum cost gaming debt We million over net strength million will sell able Global near-term in debt. OPtiMa of a year increased loan paid flow in revenue. in reduce XXX which certain million launched and Proceeds expansion. were to Lottery efficiency summary, expected $XXX gaming and net in solid drive activities X.XX helping the over XXXX. primarily agreement billion. liquidity XXX Our and be continued was reduce digital extensive was deliver year We savings million financial program announced enabled in structural the the us XXXX results from XXXX, to by

XX. Slide to Moving

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time QX, the amid like year-over-year. CapEx Back I with as some remarks. as dedicate to you. restrictions. ongoing remain operating America. high Global would and are For questions. trends for the on higher my even we games, In relatively expected ticket income QX, Thank to previous Gaming, double-digit are from sequential be concluded now in and in on the same-store both in profit stable well are to exceptional expected excluding results sales draw operator. a Lottery goodwill January year-over-year an contribution Depreciation jackpot and expected and levels growth revenue revenue be to North impairment And amortization coupled answering Global basis, year. strong increase and should with to coverage instant in-line to the relatively your

Operator

Santarelli Deutsche Thank first question Carlo comes Instructions] And you [Operator from our Bank. from

Your line open. is

Carlo Santarelli

all obviously, for Good the to sale time the XXXX of little afternoon run EBITDA would you at ops guys million at lines. obviously, here. your of X.X was in color. the fourth Italy and and something But a about kind I along thank the the and I Extracting think the believe of oranges range. discontinued you apples you the adjusted bit were number change the for XX business, the fourth to the If sale million of if be billion. about you is - we think business, your like Acknowledging, looking XXXX those with X.XX or a quarter, that in million, there the are be of may were XXX Italy and reported rate about the XXX X.X and quarter kind for referenced, kind

lottery that remain lottery You rate return half of of of obviously a the the for implementation, to strong think business in side. obviously, about depending something cost from expect will the XXXX that XXXX, gaming and you think I the is you kind you in results, as that to that program obviously have a this XXXX, flow-through on run strong adjusted the the Is cost year. most more off back the on see side, first reasonable we or embarked are on guys on anticipate and embarking quarter have would

Marco Sala

Max?

Massimiliano Chiara

question, take this will Hi, Yes, Carlo, I good Marco. afternoon. morning. Good

difficult restrictions, outlook. have this Global discontinued understand split really ops. the continuing upon the ops start our the It point at affecting uncertainty the the I between definitely, is with said, Gaming given segment. mainly pandemic-related, you rebuilding full-year our we associated I to as based to models and But guys need So provide

qualitative So offer perspective let high-level some here. me

at big growth Global a higher to barring return XXXX the last of beginning, levels, than both from pandemic. unforeseen a year trajectory expect pandemic the and the say the profile right. impact recovery business. changes and would any This So a profit consistent obviously, the be that and complete for the with Lottery, in we revenue XXXX premise would We for

don't in full On this the be later in recovery but XXXX. the or; should Global above XXXX levels until revenue and instead, we probably a segment pre-pandemic Gaming profit levels, to definitely expect XXXX

and that, be pursue partial obviously, that offset that at our color and to Carlo, have As to that uncertainties in still provide think any point, will able we we expect double-digit continue. XXXX. betting this don't And growth more pandemic. to I business, where given a momentum would we we around stop continue the digital And to are at the

Carlo Santarelli

That help one I follow-up. guys, did you. thank could, tremendously, If just

as One states were of United your at perspective perhaps foresee expansion XX competitors little mentioned what States perhaps about guys many you share on of that iLottery. business and a provide? the your as bit last as iLottery kind looking in night talked had you opportunity the of the that Could that, and currently could

Marco Sala

No, I will take this, Carlo.

WLA the in rest, customers, our States company already are nine are which the well-established three and I think overall international. of because iLottery represent a with for we opportunity great United

of higher appreciating We are in iLottery. receptors

we as expanding increase player growth this driven and an expect jurisdiction As we And that existing And by we several to base in prepared an the iLottery new well. jurisdiction next said years. in remarks, XXXX. is of enjoyed in over our double-digit XX% maintain over

I it business. to know, time. sure games. portfolio start And you investing As part will of many predict expanding an happen we will are in incremental is invest But tend on difficult that, in we are and of very regulating for iLottery that it, this to over the interest initiatives, the we seeing it when pretty are

marketing some by next player will increasing the platform in to our our support current acquisition way, customers also of are to our activities customers. and plate and the several U.S. our transition enhancing are we We for retention our months. And

over drivers of solid expecting are in So consider overall we and growth we lottery sure, the segment. iLottery the the for for future of one the as growth next double-digit five-years, the growth

Carlo Santarelli

very I color you appreciate much morning. guys. this Thank Great. the

Marco Sala

Carlo. you Thank

Operator

Thank you.

from Chad comes question Beynon next from Our Macquarie.

line open. Your is

Chad Beynon

good taking thanks I my lottery. wanted back afternoon, for to Hi Marco, questions. to go

standpoint. management great standpoint, of successes focus XXXX. throughout instant about all are coming nothing tickets. states up and know Wanted manufacture in more Are are contracts to multiple in include future? those renewal the tickets on the long, your a rolling I opportunities very there gave to talked and print I a facility the shorter-term You guidance manufacturers. manufacturing know the from from contracts sometimes

couple Just the segment? how years understand that trying viewing your share are over you Thanks. in to of next market

Marco Sala

you. Thank Sure.

for making growing incremental. instant primary consider it our been Two were progress opportunity the good printing, are area XX-months, we awarded the three In We we and of of ticket contracts. with four have these printing last of us.

us We market better and have invested to growth beyond. in instant a from be greater in printing positioned that capacity XXXX has

all say in the that on years, this to So we kept in time, over last area. investing

on invested have innovative We products.

are getting together area the business with one good overtime. of on and our response we mentioned from to I lottery We iLottery grow as before, drag, rely customers, this overall additional

Chad Beynon

XX%, their is familiarity Great, talk somewhere achieve the market with just that this the you thanks. up guys interface comfortable for the you with that the user your players' forward, share alluded on to to, games, games then about on better in could and your given you iGaming then are of a and content? success? expect players we your going familiar share And can placements Are

Marco Sala

opening, that we objective update soon also important at our portfolio are floor. between games, order contents is to jurisdiction that considering with think that, market keep playing we of are to our to We they can offering possibly think. the from that share. opportunity play develop in on market we investing but the XX% enhancing market of and starting we this XX% that the growth, share to new But the introduction when are handled players our is what is and is games This order apart the in in one see used and excess of average But look increase in the we iGaming very to see our reach as a share XX%. as we overall, third-party keep and

Chad Beynon

very help. you Thank I much. the appreciate

Marco Sala

you. Thank

Operator

you. Thank

Jonas Truist Our next question comes from Securities. Barry from

open. Your line is

Barry Jonas

you thank much. so Hey

cash ago, guidance. following years A So you maybe first flow on issued just question. free up few Carlo's adjusted

those levels? get when could any it XXX puts us give Can I if to you and million you just takes million. think was to about to maybe additional and think XXX back

Marco Sala

Max?

Massimiliano Chiara

not in in I on going would higher good directly short-term. that obviously, generated respond focused performance noticed, of obviously next to your rather We as supported cash the would up from long-term to we of you be flow going year is of flow primarily see cash I terms flow, And a here by XXXX. So the trajectory stay questions cash the profits.

would that management, capital warn driver CapEx. you cash obviously working was another invested flow our I tight associated taxes. the XXXX Although is our important And that and with comes capital both there higher profits with for of

revenue will in naturally growth, full So in facilitate XXXX in invest recovery we to support order more to did than need and we future XXXX. capital the the

I this with So XXXX. at you XXXX we be assumptions probably own your beginning, in XXXX think can the mind, flow to as I expectations. higher than said But the around formulate cash expect

Barry Jonas

there curious are And guys COVID. more Great. if you The could changes Marco, you your a Great. like return prior think permanent a face business you the customers more levels. just then maybe to high-level sounds any as or world I'm may normalcy, result think But of returns question. structural it to eventually

Marco Sala

digital good in I getting cannibalization, players digital already by a The very the a rate jurisdictions at that with the good used offering this because It our any. regulate markets where minor if way, mean, well is the various it. sure. business carries for very, our will established. have new And is very a because level continue news time portfolio solid for That of growing a seen looking of over part is because are at will very question. very

So is good a news. very this

strong. we As steadily see the I are find in of it And really they revenues. our asking are will be player even well, portfolio reopening appetite pent-up their more the to important in innovate once of demand. the said, a think to customers terms restrictions I this their lot attitude, much removed, order to we is very evolution. is course, us demand that related once way to of very sharper see generally the On now gaming, to grow. are doing very and are a increase venues We - And the

such expect also in to to we have order cashless customers innovative we in back, solutions, discussed get with better provide previously the I serve to business also about so And have as and our the players. invested order

portfolio generally So I of for overall, think is speaking the our part the outlook positive.

Barry Jonas

much. you Thank Great. so

Marco Sala

Thank you.

Operator

Ghilotti Thank you. [Operator from from Instructions] comes And Equita. our next question Domenico

open. line Your is

Domenico Ghilotti

questions. Few

business. on the digital is first The

same-store QX? level. mentioning size I give level wonder very, the compared I that you already lotteries, before were you If say, message think global XXXX? year-on-year. understand have say, much pre-COVID you savings would question you were the is and XX% the from is on Can any properly in that what at very How mentioning. let's today And You let's is level is that strong XXXX of top. mentioning the a double-digit was try a how you to in QX. are this jackpot, double-digit from sustainable to is question if starting to structural of iLottery end growth much level, is the sense sales that And were contribution last on a on we this The book, the XXXX? so be That really second on

Marco Sala

take will I business regarding to savings. of I Max digital numbers second leave articulate Dominico. Okay, question the and on the lottery. the and iLottery will

do lottery said. North the to-date, across understood second well same-store XXXX. is regions. half had double-digit what accelerated momentum And QX the doing is XXXX underlining Regarding of perfectly into for global continues is we the the I in sales you and the business well. the up various fact has to America

level international in the year doing Italy launches new gaming enjoyed as in supporting from and U.S. recent trends. part The as that, Extra closure is upside strong doubling the the prior as well have business of the jackpot. coming In The we game addition are gold well is in and is and up Italy. to iLottery QX. the such XXeLotto

rely jurisdictions trend the this the I think And over I leisure gaming this is benefited we of we double-digit games. why has lotteries growth the CAGR between our that players of few period robust. the we years. previous future time, from alternatives. for not reason other And growth remained trajectory and we think information, in lack and next years. is of continue slightly that than and in interest the positive, because that it what goes can, that be will years, the a have believe provides very plan is should years the years. will we something mid- have previous at keep believe point, player as and the all planned this do - the always even us this reopened doing considering research in single-digit on But what in maybe steady seen us are trend on well are or gaming we done we our have some we when in better comfort telling I have enjoying Even in appreciated the

Domenico Ghilotti

Okay.

Marco Sala

Max.

Massimiliano Chiara

Yes.

with me the let start Domenico. So Hi, digital.

So specific carve-out across line for our know, the digital as we provide a you revenue that on cuts business segments. the

So plus for XXXX, we booked million revenue. XXX

number, far, deliver XX% prorate so as that of with of we benefit duration the revenue than So of and iLottery to obviously, are more sports half is urge the kind through the a I is in software remaining those the consider slightly you recognition is service of than run sports more that portion, contracts. as iGaming, overtime balance that we betting, betting.

terms effectively revenue the delayed of some being up of booking. end And in

guidance the margin. at for with Gaming accretive par margin, the definitely specific to that And the global Global digital at would it is obviously, digital. provide terms for the is the with didn't company a margin, on in is be business, business segment. In what our global of par, all, and that least said we all we But at

on structural with the savings to savings. the charges the and first, move me the program, program, then I structural Now let start

That initiatives. booked On in the about terms initiative three tertiary cost of of in than lotto's complete charges relates reorganizations/the kind of less excellence the slightly in done the the that to charges QX. three was primarily in already Two million savings the was $XX operational we are bucket XXXX, our split and in program.

excellence So the a that ramp-up period charges the because we the deliver But period. has can initiative it slower volume operational taken. to have been on again, depends

is well improvements third the initiative charges still that is progress to On little this anticipated. bit been reorganization the as it spent other one-year will and But progressing finish. require year. lotto's are another the taken There be longer majority being two-years have of and probably margin to and will more complete of in the on savings tail a

so for terms full-year amount the of in of will a savings. accrue in total XXX savings of And XXXX, million majority the for expected

Domenico Ghilotti

point. or, savings you Have any already booked in the XXXX end let's say,

savings rate XXXX, run end the at we of the So of as consider. should

Massimiliano Chiara

different two-years focus a see the in from on need cash XXXX to was preservation. perspective. you So The

and here certain looked in are at cost stop haircuts are related. of spending So to going personnel kind primarily nature. about we to some we structural item, more ways forward savings talking made The

And So that continue some over of we initiatives the deliver 'XX to accrue. cost-cutting in time. continue will will

but So portion a that in of achieved, kind XXXX incremental versus has been not already of is XXXX.

versus they savings On progress the longer will all and incremental initiatives, be achieved, XXXX. are the being term of in

is between the difference the that kind So two-years. of

Domenico Ghilotti

that some, coverage. relate we you. CapEx some be the also significant should have will also say, to Okay, mentioning just initiative - regulator aware payment we were a And consider due to deferred to Do - XXXX thank by on go follow-up you to up XXXX. compared

be have So things you account. some into relevant do taking to

Massimiliano Chiara

will the the I answer you then on comment give will question. of last and the CapEx, I the on eventually part Marco So let

in comfortably we But that CapEx for be through So XXXX. after number XXXX to there XXXX, will run will we the in a the step-up stay XXXX, are below definitely, CapEx levels. that be the significant we reduction in convinced able for

Marco Sala

On our regarding I our see continued any the regulator. not do with operations, change relationship

Domenico Ghilotti

taken relevant payments continued operation that should account? on amount so or the have from into benefit your all be been did you regular, not mean deferred any payments I

Marco Sala

No.

Domenico Ghilotti

thank Okay. you.

Marco Sala

Domenic. you Thank

Operator

next our Jefferies. with And from comes you. David question Katz Thank

is line open. Your

David Katz

digital an your the appreciate have kind vision is morning and well. that of what And Games. bit with Hi, And I capabilities. Scientific that the you. patent What of have think a on made wanted how the about have works about really around into you commentary follow-up strategic key you turn announcement do is of aspects. might that business. all good of lotteries, games context awful of betting on Thank of sharing There which have sports the aspire you relationships, sets just obviously I you done on in everyone. how to you iGaming that forecast. what talk of and sets attention that And the elaborate Look, overtime? the for does, to it our we and lot secondarily, Can

Marco Sala

Sure.

on David, didn't Sorry, me X elaborate want you the thing. I catch only? or to digital sports offering betting Do overall

David Katz

and sports Primarily iGaming. betting

Marco Sala

Fine.

to games, Okay, Look, provider, role gaming. already I our a Dave, of services, on fine. both have of of iGaming intend BXB as platforms, I areas, provider we in think have important BXB think, elaborated

We a portfolio. comprehensive very have

the ability to have the possibility distribute around integrate offering. We have with studios to going forward bills our to cut world we the it,

are of a very very And land-based XX that we And of our will are already is regulated. sports we market-leading in offer we we betting is our with in in size. XX nearly states And our jurisdictions. fact, because An regulation from iGaming that have our enables the customers. service are jurisdiction good we to turnkey trading additional any we possible not team, scalable, enjoying all-in-all, reliable, share to a benefit as is expect market In for a on of a much this that We do have have customers platform, very solution based the and progressive different take offer distribution. comprehensive hardware reality, us offering. matter

the the customer sports have the We strong expected the that the And partner have NBA with customers with grow very partnership [indiscernible] the the the as in five-years. market, all supplier. to a And BXB perfectly year is possible fast leaders, base services that can market about are proactively from this we interpret thinking of to as offering And land jurisdictions all our be to to next our over know, intend and that Boyd. such a digital partnership we is securing any to are way regulation. of new you ask betting role

David Katz

follow be is I to not up, operators to, prefer their who right? and be own larger small can the look operators that for let's that assume it will if going medium-sized to it more fair own So where, it say, integrated in is enterprise to instance would

Marco Sala

forward very our the especially are opportunity you in to on and to platforms, other the then other [indiscernible] agree success their bring But able is can we the hand, think to I was with right, big services integrate that. and our is operators I biggest it likely, on operators. mid-sized Yes, digital platform enjoying. space, going provide

we require anyone a might them. can digital offering So provide

to Going turnkey think that the on will forward, a mid-sized I opportunity solution. have be wants operator more

David Katz

Perfect. was for you second might elaborate And question my around agreement announcement how the sharing and on patent that. the

Marco Sala

other's my access give to I (Ph) view, and will agreement, simple. each Yes. try to have gaming [cashly] immediate view each this my is patents. company very Through

their a gaming While technologies. solutions the the too. of who portfolio comprehensive leveraging be to commercial and provide portfolio service enhance two license Other combined will will Scientific IP remain separate, able the respective both to companies Games solution patented cashless will cashless to IGT are take players wanting

only from to we players end to significant from well. the IP the that enables not end, favor made years. investments have of their this of will the So this and wallet. benefit technology portfolio, cashless as at quicker value, also products, where generate the to such of our But our as agreement We IGT think at over the benefit operators day, the a for their reserved adoption

David Katz

I see.

you can third respect management point or becomes the as as casino is system offering provider? theirs, So that might ultimately to with you brand which some the agnostic using yours long be get

Marco Sala

today, get think Scientific can the get this is pool separate and Games to IPs I from their portfolio our keep own No, we enhance can offerings. of IGT offering, will point

interested will are there conditions well. IP, of through if those they which commercial other will be as portfolio their some in enhance Going operators taking forward,

David Katz

much. very I appreciate thanks Okay. it.

Marco Sala

Thank you. thank you very much.

Operator

closing And Sala showing turn I’m the now further back no remarks. at the queue. time, you. Marco this over would in questions Thank any like conference to I to for

Marco Sala

portfolio Thank you for the geographic presence. businesses opportunity an advantages of provided diverse to joining us broad IGT's XXXX and today. of highlight

and operational core on you, on progress made Our competencies results. we growth day. sharpened outlook, and with clear year, Thank and and diligent focus cost enhancing and have Global path extraordinary unlocking the to great We in the resilience debt company our a reducing substantial a focus structural leadership reorganizing cost strategic savings. With a profit value. Lottery have important and a provide to stronger revenue shareholder

Operator

and Ladies have Everyone, today's concludes now this disconnect. your and gentlemen, you wonderful you may participation, day. Thank conference call. a for

International Game Technology (IGT) 2 Mar 212020 Q4 Earnings call transcript