Vietnamese lotteries suffer ‘significant’ double digit drops to profit in 2021

Vietnam lottery
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A number of Vietnamese lottery companies suffered huge hits to their profits in 2021 with some recording double digit drops amid the continued effects of the COVID-19 pandemic, according to VN Express.

The disturbance to natural life caused firms in the southern region to cease the issuing of tickets for an extended period due to social distancing measures, which caused ‘significant’ decreases in profits and revenue.

Among the companies to witness substantial downturns was the An Giang Lottery, whose revenues of more than VND3.3tn ($142.7m) and after tax profits of VND344bn ($14.5m) in 2021 dropped 25% and nearly 44%, respectively, from 2020.

This materialised despite a decrease in management costs and bonuses.

The Hau Giang Lottery was another traditional lottery company to suffer as its total revenues fell 19% year-on-year, in addition to a nearly 27% fall in its after tax profits.

Meanwhile, the Long An Lottery only completed 70% of its targeted plan as it blamed overheads during lockdown for dragging its profits down.

Other lottery companies in Dong Nai, Dong Thap, Ho Chi Minh City and Ben Tre provinces are yet to release their final 2021 financial statements, but the majority of these groups have also recorded a decrease in revenue and profit.

Nonetheless, since the lifting of lockdowns in the southern provinces and Ho Chi Minh City, business outlook has improved somewhat.

Many lottery companies are anticipating significant growth in 2022, with the An Giang Lottery, for example, setting a revenue target of VND5.4tn ($234.9m) and after tax profits of VND530bn ($23.1m).

The Hau Giang Lottery expects revenues of VND2.97tn ($129.2m) and after tax profit of VND220bn ($9.6m) this year, a YoY increase of 19% and 25%, respectively.