Loto-Quebec Posts Latest Results, Reveal a Rise in Revenue
The Montreal-headquartered provincial Crown Corporation Loto-Quebec has posted its financial results for the first half of this year, revealing an increase in revenue.
According to available information, Loto-Quebec saw its revenue jump by 1.53% when compared to the corresponding period of the last year, while at the same time, its draw-based games business went down.
Numbers Going Up
The most report reveals that during the first half of 2019 (183 days to September 30) Loto-Quebec generated C$1.42 billion in revenue, which is an increase from $1.39 billion the company earned in the same period of 2018. However, it should be noted that the first half of 2018 was 6 days shorter.
The report revealed casinos had been the most popular gaming form among the players in Canada during the first half of the year. Casinos earned $512.5 million, which represents a year-on-year improvement of 5.3%.
Gaming revenue recorded a rise of 3% to $465.9 million, with video lottery terminals cited as the main driving force behind this result, although bingo and kinzo products saw their numbers rise. Lottery revenue dropped by 3.7% to $449.8 million.
According to Loto-Quebec, a decline in the lottery was something the company expected, since last year’s results were boosted by particularly high Lotto Max sales, due to higher jackpot prizes on offer. At the same time, online lottery games generated 7.6% more revenue in the first half of 2019, which translates to $15.5 million.
Costs Go Down, Gross Profit Goes Up
Cost of sales went up by 1.37% to $244.8 million, while total costs increased from $426.8 million to $430.3 million, which represents a slight rise of 0.8%. The costs increased due to 6.6% more funds being spent on staff. Some savings were made, as depreciation costs were cut from $62.7 million to $50.7 million. In addition to that, the company revealed its general operating and administrative costs for lottery, casinos and gaming establishments were also down from the corresponding period of 2018.
A rise in revenue led to an increase in gross profit for the first half of the year, ending the period with an improvement of 1.6% or $1.17 billion in total. At the same time, consolidated net income reached $736 million, which is 2% than at the same time last year.
Commenting on the latest financial update, Loto-Quebec President and Chief Executive Officer Lynne Roiter said the Crown Corporation’s total revenue for the first half, for a comparable number of days, had increased by $127.2 million, or 9.9%, since 2015-16.
Roiter pointed out that for the same period, thanks to tight management of the company’s expenses, Loto-Quebec’s consolidated net income had increased by 17.6% to $110.3 million, to which of the sectors had contributed.
The semi-annual results follow the data for the company’s 2018-19 fiscal year, made public back in June, which revealed a 3.1% rise in revenue to $2.83 billion. The report showed the contribution made by Loto-Quebec’s online gaming offering improved to $105.4 million.
Numbers posted for the first quarter of the current fiscal year revealed a drop in revenue by nearly 12%.