Loto-Québec Extends with IGT, Set to Meet 2018-2019 Goals
The Québec government’s entertainment arm, Loto-Québec, has been a part of the lives of people in Quebec since 1969. The organisation was first established to offer games of chance in a controlled environment and reduce opportunities for organized crime. Loto-Québec has since become a part of the economic and social fabric of eastern Canadian life.
Loto-Québec now enters its 50th year of business. It is therefore only fitting that its financials prepare to show growth and meet its full-year goals for 2018-2019.
In addition, one of its most successful partnerships was recently extended. IGT (International Game Technology) and Loto-Québec are now linked until at least September 2021 for its video lottery system.
Financials on Track for Annual Goals
At the end of February, Loto-Québec released its third-quarter financial report for the 2018-2019 year. The numbers were positive on a quarterly basis as well as for the first nine months of the fiscal year. Moreover, the lottery company looks to be on track to hit its ambitious annual goal.
The first three quarters of the fiscal year showed:
• Consolidated revenues = $2.165 billion (up 7.8% year-on-year)
• Net income = $1.122 billion (up 10.1% year-on-year)
– Lottery sector revenue up 18% year-on-year (record Lotto Max jackpots totaled a record $116M)
– Casino sector revenue up 4.2% year-on-year (included Casino de Montréal’s 25th anniversary)
– Gaming establishment revenue up 2.3% (reduction of VLTs put number under 10,000)
– Online gaming sector revenue up 32% (included internet casino games and lottery products)
Loto-Québec President and CEO Lynne Roiter commented that they were on track to achieve the targeted net income for 2018-2019 of $1.261 billion. This will allow them to pay the government the expected dividend.
For comparison’s sake, the final 2017-2018 fiscal year results showed a total increase of 3.7%, with $3.769 billion in consolidated revenues. Gross profits were up to $2.331 billion, an increase of 4.3%. Furthermore, consolidated net income was $1.335 billion, an increase of 8.5%.
The 2017-2018 year also showed online gaming growing at a significant rate of 37.5% from the previous year. Online casino games and lottery options have proven to be consistently successful and popular, each year more than the next.
More IGT for Loto-Québec Interactive
Part of the success of Loto-Québec’s online gaming sector is the partnerships with key companies that provide services and platforms that appeal to customers and build trust. When Loto-Québec signs deals with companies like Evolution Gaming and IGT, it confirms its intentions to provide the best in online gaming products.
The first time Loto-Québec partnered with IGT for interactive games was in 2012. This was as part of a deal to launch interactive online casino games to EspaceJeux.com. IGT provided titles like Cleopatra®, Wheel of Fortune®, Monopoly, and Clue.
Fast-forward to March 2019 for the latest announcement, and it was with IGT again. This time, it was an extension of an already-profitable deal between IGT subsidiary IGT Canada Solutions ULC and Loto-Québec for its video lottery system called INTELLIGEN™. The three-year contract extension puts the two together until September 2, 2021.
INTELLIGEN™ is currently used to monitor nearly 10,000 VLTs across Québec via one system that controls security and advanced reporting on all machines.
The IGT deal also includes the continuation of more games and services, including a selection of casino-style slot games, lottery instant-ticket vending machines, VLT games, and the Canadian Bingo and Poker Network. All of this contributes to the increasingly successful and profitable online gaming realm of Loto-Québec that pushes overall revenue higher each year.