- »Loto-Québec Reports Rising Annual Revenue
Loto-Québec Reports Rising Annual Revenue
June was the month for Loto-Quebec to report its total annual revenue for its fiscal year of 12 months ending March 31, 2019. Its final report was a solid one, showing annual growth of 3.1% across all verticals cumulatively.
This is in line with what Loto-Quebec predicted back in February when it noted it was prepared to meet its full-year goals for 2018-2019. It was correct.
The 2018-2019 fiscal year report was presented to the National Assembly on June 13. The numbers in it were positive in nearly every gambling sector.
Overall, Loto-Quebec’s total revenue for the fiscal year was $2.827 billion, which was an increase of 3.1% over the previous year. That increase totaled $84.9 million.
Net income was up 5.4% to $1.408 billion, which was $72.7 million higher year-on-year.
By sector, the following numbers were provided:
• Lottery revenue: $955.7 million, up 8.7%
• Casino revenue: $917.9 million, up 1.2%
• Gaming establishment revenue: $979.5 million, down 0.2%
• Online gaming revenue: $105.4 million, up 23.2%
It should be noted that the gaming establishment revenue includes all facilities in the bar network, and all gaming, bingo, and Kinzo halls.
According to Loto-Quebec President and CEO Lynne Roiter, total revenues have risen for the past five fiscal years due to a tight control over expenses and improved productivity. “The ratio of net income over revenues has also risen from 45.5% in 2014-2015 to 49.8% in 2018-2019,” she said. “All of our business sectors are contributing to the increase in net income, which reflects the efforts being made right across the Corporation.”
Contributing Factors and Highlights
Loto-Quebec attributed the increase in lottery revenues due, in great part, to the strong performance of Lotto Max. Its sales eclipsed $52.3 million and increased 30.6% over the previous fiscal year. The instant lottery category also continued its growth path to the popularity of permanent games and its holiday offerings. That instant lottery revenue was up to $18.8 million, an increase of 12.3%.
Growth in the casino sector was credited primarily to its themed promotions, which were sold to nearly 10 million customers. Even Casino de Montreal, which was wary of nearby road work and problems with customers accessing the casino at times, revenue increased despite the issues.
While gaming establishment revenue dropped only slightly, video lottery terminal sales dropped 0.7%. That $6.7 million decrease was primarily due to the reconfiguring of the terminal network in bars, as those establishments that lost terminals saw a sharper decrease than others.
Online gaming success was attributed to improving the ease of navigation for customers between various product lines. The easier access and digital movements provided for an increase of 23.2% for all lottery and casino games on the Loto-Quebec website. The total revenue was up $19.8 million over the previous fiscal year.
One highlight of the year for Loto-Quebec was what it called responsible commercialization, which included initiatives to raise awareness about problem gambling and potential harms. The campaign focused on several issues, such as educating about how to set and respect gambling limits, offering an online video about luck, and introducing a menu on the Loto-Quebec website with links to information about responsible gambling and resources.
Overall, Loto-Quebec is happy with how its 2017-2020 strategic plan is working. It is staying on track by keeping the focus on customers, strengthening its gaming and entertainment focus, maintaining its campaigns regarding responsible commercialization, and continuing to optimize convergence, agility, and efficiency.
Focusing on Forecasts
At the end of February, just a few months ago, Loto-Quebec released its third-quarter financials, and that gave the company the ability to express confidence in the full-year forecast.
When looking at the third-quarter results as compared to full-year numbers, the former did much better in some areas.
• Lotteries up 18% year-on-year for Q3, only 8.7% for 2018-2019 full
• Casinos up 4.2% YOY for Q3, only 1.2% full year
• Gaming establishments up 2.3% YOY for Q3, down 0.2% full year
• Online gaming up 32% YOY for Q3, only 23.2% full year
As it seems, a lot of growth happened in the third quarter to push the yearly numbers upward.