Atlantic Lottery Corp Records a Drop in Profit
Atlantic Lottery Corporation (ALC) announced its business results for the recent fiscal year, which show a slight drop in profit.
The profit for fiscal 2016-2017 reached $422 million, $6.5 million above the targeted sum, which is the fourth consecutive year the annual profit exceeds $400 million.
Numbers Not Looking Good
Still, the profit recorded a year-on-year drop by nearly $10 million, while the overall ALC revenue went down by 3% to $1.15 billion. The sale of lottery tickets also dropped, resulting in a 4.6% less revenue of $699 million, while video lottery receipts grossed $434 million – 1% down from the previous year’s results.
Entertainment center revenue managed to record a 4% increase, for a total of $19.2 million.
The main reason for such a decline in revenue lies in cutting the expenses, including direct costs and operating expenses by 3.2% and 4.5% respectively.
Three out of four provinces where ALC operates surpassed their individual annual profit targets (New Brunswick, Nova Scotia and Prince Edward Island), while Newfoundland & Labrador performed poorly, earning around $10 million less than in the previous fiscal period.
Digital is the Key
Brent Scrimshaw, the Chief Executive Officer of ALC, especially blamed the results on digital – where ALC still lacks serious competitiveness – but emphasized that the Corporation was bringing $60 million more on an annual basis than five years ago.
Scrimshaw wants to improve ALC’s digital platform which would allow the company to be more competitive in the market. A fully developed online gambling product is necessary for ALC, and although new online and mobile games are on the way, more action is needed.
He said on several occasions that an enhanced digital offering would push ALC forward the competitiveness offered by companies from other Canadian provinces – British Columbia, Quebec, Ontario and Manitoba.