RECORD LOTTERY PERFORMANCE DRIVES GROWTH AT LOTO-QUÉBEC
Canadian provincial lottery operator Loto-Québec has reported a 57.5 per cent increase in total revenue to CAD$1.08bn for the first half of its 2021/22 financial year.
The company said that the H1 results were “very positive” as most of its activities only resumed operations at the end of the first quarter under restrictions.
Growth was driven by the lottery sector, which recorded its best half-year performance since Loto-Québec’s inception, with revenue climbing 53 per cent year-on-year to $513.8m between 1 April and 27 September 2021. Revenue from draw-based lottery games rose 59 per cent to $362.7m, while instant games revenue rose 37 per cent to $136.1m and revenue from event-based betting climbed 76 per cent to $15.0m.
While lottery retailers were open throughout the six-month period, the conversion to online sales continued with iLottery sales up 6 per cent at $64.7m.
Revenue from casinos and gaming halls climbed 70 per cent to $305.3m following their gradual reopening in mid-June, with Land-based casino revenue 150 per cent higher year-on-year at $161.7m, while online casino revenue was up 19.5 per cent at $126.2m and gaming halls revenue rose 83 per cent to $17.4m.
Revenue from gaming establishments increased by 53 per cent to $266.6m, with revenue from bars rising 54 per cent to $263.0m and revenue from Bingo and Kinzo climbing 9 per cent to $3.6m. In the comparable period last year, all gaming establishments were completed suspended for the entire first quarter of 2020/21.
“At the halfway point of the fiscal year, our revenues have exceeded 75 per cent of their pre-pandemic level, and about 90% since July,” said Loto-Québec president and CEO Jean-François Bergeron. “Lotteries have achieved record sales.
“This success shows that after more than 50 years, interest in this product category remains high for draw-based lottery games as well as for instant games and sports betting.”
During the six-month period, Loto-Québec introduced several new products to its players, including a new MEGA 360 lottery game and single-event sports betting, which became legal on 27 August.
During H1, total cost of sales increased by 49 per cent to $200.9m, with lottery costs up 57 per cent at $103.0m, casino costs climbing 22 per cent to $29.8m, and gaming establishments costs rising 53 per cent to $68.1m.
The company reduced operating expenses by 20 per cent to $294.8m during the period as personnel expenses fell by 35 per cent to $124.3m, helping Loto-Québec generate net income of $584.0m for the period, compared to net income of $181.2m a year ago.
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