Supplier News
Canada – Loto-Québec reports improved results
By Phil - 1 September 2015
The fiscal year 2015 to 2016 has started off well for Loto-Québec with the corporation recording higher revenues and net earnings for the period from April 1 to June 29, 2015, with revenues reaching $860.5m, up 0.9 per cent and net earnings of $298.7m, up 2.6 per cent.
Tight resource management helped reduce total expenses by $9m, minus 3.7 per cent. Those encouraging numbers motivate the Corporation to continue enhancing its entertainment offerings and pursue optimization efforts.
Loto-Québec started off its financial year on a good footing in the lotteries sector, where revenues rose by 3.3 per cent compared to the same period last year, mainly due to the greater number of large Lotto Max jackpots offered. Quebecers were indeed luckier during the period, as indicates the $230.7m, up 3.6 per cent, remitted to winners. In addition, 27 prizes worth $1m or more were paid out, compared to 11 during the matching period last year. The trend in this sector continues during the current quarter, as sales are higher by 88.9 per cent for Lotto Max and 15.6 per cent for Lotto 6/49 (July 2015 compared to July 2014).
Casinos are also doing well, reporting 6.4 per cent higher net earnings despite a 2.2 per cent drop in revenues. The emphasis placed on entertainment, particularly themed promotions, is benefiting Québec’s four casinos.
The greatest progress was marked by gaming halls and bingo, which grew by 34.2 per cent and 40.5 per cent, respectively. However, the gaming hall sector, which also includes the video lottery network, declined slightly by 1.1 per cent due to lower patronage in bars and brasseries and a smaller number of such establishments.
Moreover, revenues from Espacejeux.com climbed by 27.4 per cent, confirming the gain in popularity of online games over the past three quarters.
The company stated: “During FY 2014-2015, Loto-Québec adopted new strategic directions regarding entertainment, efficiency and responsible commercialisation. The positive results in the first quarter support the Corporation’s plans to further enhance and diversify its overall entertainment offerings to better meet customer expectations. These results also confirm the emphasis the corporation is placing on optimising resources, which is continuing both from the standpoint of offerings and efficiency with a view to producing ever-better results.”
