Tipos, Slovakia’s national lottery company, has posted its full-year financial results for the trading period ended 2020, reporting record turnover of €683m.
The lottery stated that it was able to end the year with historic numbers thanks to a more ‘appropriately set connection between sales and marketing, austerity measures, revisions of contracts and other managerial steps’.
Tipos ended 2020 with a €143m (26.4%) increase in turnover compared to 2019, beating its target for the year by almost €200m. The high turnover saw the lottery achieve a 29% profit increase after tax compared to 2019 (2019: €7.5m, 2020: €9.6m), which allowed it to support sports with almost €47m through a levy for the Ministry of Education.
Marek Kaňka, Chairman of the Board of Directors and CEO of Tipos, said: “While the company’s net profit has been steadily declining over the last three years, we have been able to grow last year, despite the crisis.
“I would like to say with great satisfaction that the company Tipos closed the year 2020 with a turnover of an incredible €683m. Thus, we exceeded the turnover in 2019 by approximately €143m. Compared to the plan, we even grew by €200m. I am really very happy that we can say that the company Tipos grew by more than a quarter in 2020.
“We are extremely proud that, despite all the crisis events, we at Tipos managed to catch up with all the losses caused by the pandemic and significantly overcome the turnover of 2019. After the outbreak of the corona crisis in the first quarter of 2020, Tipos suffered significantly. The vast majority of our sales network has been closed.
“However, we understood that we need to adapt to the online environment and bring our products to the online world. At the same time, we have set up marketing to sell our products more effectively. This helped us significantly.”
Alongside a more effective marketing strategy, Tipos management carried out several internal controls and audits last year, revised several contracts, set up internal processes, and resolved old cases. The operator also sought to squeeze more value from existing contracts but with no increase in outlay.
The lottery managed to negotiate with suppliers a volume of performance in the amount of plus €9m for an unchanged package of finances, in various areas – media, bank fees or legal services. It also cancelled some unjustified partnership agreements, revised public procurement, made several organisational changes, and cancelled some unnecessary jobs.
Kaňka concluded by commenting on Tipos’ plans moving forward. The CEO stated: “Thanks to good economic results, Tipos will be able to fulfil its main role even more – to support sports and young successful talents.
“The goal of me and my colleagues is for Tipos to become a symbol of a modern, successful and well-established company for which it is an honour to work. Our goal is also to ensure continuous and sustainable growth of the company and thus increase shareholder value.”
In December, Tipos confirmed significant year-on-year success from its instant lotteries, despite the impact of the ongoing COVID pandemic on overall lottery sales.