Transact Technologies reported a widened loss of $1 million for the first quarter ending 31 March 2020, with net sales down 11 percent year-on-year.
Adjusted EBITDA was negative $1.0 million in 20Q1, compared to adjusted EBITDA of $1.3 million in the prior-year period.
During a conference call, Transact CEO Bart Shuldman said he expects a very slow recovery of the casino market, which will limit the amount of business that the company can conduct.
In the first quarter of 2020, Transact’s casino and gaming printer business saw revenue down 10 percent year-on-year to $4.9 million, due mainly to lower US sales. Though the international side seemed to be doing well.
“The global casino and gaming market is challenged to say the least. Breaking the market into different geographical areas, casinos in the Asian market, mainly Macau, are starting to open albeit at a diminished capacity, and we are evaluating the opening trends and results for a window into how post-COVID-19 casinos may work around the world.”
“I know our casino market (US) will rebound with the industry working together to define the new normal. With the opening stress beginning, this will limit the amount of business we will be able to conduct. It is our expectation that a few small projects will come through, but it remains difficult to gauge as to when they will close.”
However, Shuldman noted that casinos will be looking to add more ETGs to their mix in the future, to comply with social distancing practices, which will see more machines enter the market with ticket printers.