Operator News
Canada – Loto-Québec bounces back with ‘solid results’
By Phil - 20 September 2021
For the first quarter of the 2021–2022 fiscal year, Canadian operator Loto-Québec generated total revenues of $401.3m, up $243.9m, up 154.9 per cent compared to the same period last year, during which most of the corporation’s activities were shut down. This is a decrease of $254.9m or 38.8 per cent compared to the first quarter of 2019–2020, before the pandemic.
Consolidated net income for the first quarter of this year was $195.7m, an increase of $260m, up 404.5 per cent compared to the same period last year and a decrease of $141.7m, down 42 per cent compared to the same period the year prior to the pandemic.
All suspended activities gradually restarted in June: casinos, gaming halls, video lottery, network bingo, Kinzo and the Hilton Lac-Leamy. The resumption is going well so far, which has contributed to the enthusiasm of customers and employees alike. It should be noted, however, that capacity and hours of operation remain limited.
“I was absolutely delighted and very proud to join Loto-Québec on May 31. It quickly became apparent to me that all our teams are made up of experienced, dedicated and passionate employees, who demonstrated resilience and creativity during the exceptional year we just went through,” said JeanFrançois Bergeron, President and Chief Executive Officer of Loto-Québec.
“Given that the activities put on hold only resumed a few days before the end of the quarter, we achieved solid results. Coupled with the continuation of our operations, we can be optimistic about achieving our annual targets. Our priority remains providing a fun and safe environment. I’m very excited about the challenges ahead,” he added.
Revenues in the lottery sector were $284.3m, up $179.6m or 171.6 per cent compared to the same period last year.
The company explained: “It should be noted that this excellent result, achieved in part thanks to the strong performance of Lotto Max, exceeded the result for the first quarter of 2019–2020, i.e. before the pandemic, by $68.3m, up 1.6 per cent. In total, lottery games created 41 new millionaires in the province.
The conversion to online lottery games continued, although retailers were open throughout the quarter. At $35.5 million, online gaming revenues were up $5.5m, up 18.2 per cent compared to the same quarter last year.”
Although operations at land-based casinos and gaming halls only resumed a few days before the end of the quarter, the sector’s revenues of $76.2m were up $23.5m, up 44.5 per cent compared to the first quarter of last year, when only the online casino was operating.
The company said: “Restarting operations in a very short period of time was a major accomplishment. There was no shortage of customers within a few days of reopening our gaming locations, and returning employees were delighted to be back. The improved offering and website enhancements have helped to maintain the online casino’s revenue growth. These revenues totalled $69.3 million, an increase of $16.6m up 31.4 per cent over the same period in 2020–2021. Tight control over expenses, which was necessary due to the reduced offer, combined with several cost reduction initiatives resulted in a decrease in total expenses of more than $60.7m, down 48.3 per cent.”
The gaming establishment sector reported revenues of $40.9m. No comparison can be made with the same period in 2020–2021 since all activities in the sector were suspended from March 2020 until the beginning of the second quarter of the same year.
