Loto-Québec's Revenue Increases Year-On-Year As Lottery Plummets

Canadian lottery operator that supplies the province of Quebec, Loto-Quebec, has made a slight increase in revenue of 1.53% during the first nine months of 2029.

This has been achieved despite the decline in lottery-oriented business.

Casino Leading the Way

The 183 days-period leading to September 30th…

…saw a total gaming revenue of CAD 1.42 billion ($1.09 billion) for the operator, which is a small increase from last year’s corresponding period’s $1.39 billion.

In Quebec, the most popular form of gaming are casinos. The casino revenue has risen 5.3% from last year’s $486.7m to this year’s $512.5m.

Video lottery terminals revenue contributed to a 3% year-on-year revenue rise, to $465.9 million. This was boosted by a growth in bingo and kinzo segment. However, lottery revenue fell 3.7% from $467 million to $449.8 million.

Costs Offset by Savings

Lottery sales decline was not unexpected because, as Loto-Quebec officials explain, sales of Lotto Max were high last year because of higher jackpot prizes. Online lottery revenue in this Canadian province climbed from $14.4m to $15.5m in 2018, during this year’s first six months.

Sales cost rose from last year’s $241.5 million rose to $244.8m this year. As for the total cost, their rise was more steep – from 2018’s $426.8m to $430.3m. Expenditure on staff was particularly higher during this period.

But still, the operator managed to save some money in other segments:

Depreciation costs were reduced from $62.7m to $50.7m. Lottery, casino and gaming venues general operating and istrative costs were also down.

Better revenue resulted in gross profit for the period also being improved by 1.6%, from $1.15 billion to $1.17 billion.

Lynne Roiter, Loto-Quebec’s president and CEO, said:

“Since 2015-16, our total revenue for the first half, for a comparable number of days, increased by $127.2m, or 9.9%. For the same period, thanks to tight management of our expenses, our consolidated net income increased by $110.3m (17.6%), to which all our sectors contributed.”

Impact on Canadian Society

Canadian Gaming Association has published a study on the habits of Canadian players and the impact they have on economy of the country…

…and came to the conclusion that gaming industry in this country ed 182.500 jobs and produced an average yearly salary of $65.000

President and CEO of Canadian Gaming Association, Paul Burns, has said that “the size and scope of the industry have created a positive economic environment, where many of the goods and services needed to sustain operations are now produced and/or offered in Canada.”

Source:

“Loto-Quebec sees revenue climb despite lottery decline”, igbnorthamerica.com, October 28, 2019.