On Tuesday, International Game Technology said it would reduce its quarterly cash dividend from 14.5 cents to 6 cents, which it said will conserve approximately $100 million cash annually.
“In the current environment, we believe a revised dividend is the most prudent decision and in the best interest of IGT and our stakeholders," said Thomas J. Matthews, the gaming supplier’s chief executive and chairman.
In a company statement, Mr. Matthews said IGT continues to generate a strong cash flow.
However, he added, a dividend reduction will “allow the company to continue to return value to our shareholders at a competitive market rate and supports our efforts to fortify our balance sheet to ensure IGT is well-positioned to invest in growth opportunities over the long term.”