Loto-Quebec has released its financial results for the first half (H1) of the fiscal year 2022-23, revealing its lottery sector suffered a drop in revenue.
Lottery revenues amounted to $468.3m in H1, a $29m (-5.8%) drop over the same period in 2021-22.
This follows September’s Q1 announcement, where it was divulged that lottery revenues had fallen by $19.2m (-7%).
According to Loto-Quebec, an overwhelming factor in the decline of its lottery revenues in both Q1 and H1 can be explained by a drop in sales of Lotto Max, which had an ‘exceptional’ run last year that included two record $40m jackpots.
Additionally, lower Lotto 6/49 sales have also been attributed as a reason for decreased lottery revenues in H1.
Meanwhile, online lottery sales revenues represented 12.7% of the sector’s total revenues compared to the 3.4% during the first half of the pre-pandemic fiscal year.
Overall, Loto-Quebec enjoyed a positive H1 as the firm posted record-breaking total revenues of $1.5bn and consolidated net income of $805.3m. These represent increases of $382.9m (+35.4%) and $221.3m (37.9%), respectively, over the same period last year.
Jean-François Bergeron, President and CEO, commented: “Halfway through the fiscal year, we’re on track to not only meet but surpass our budget target. All our teams continued their remarkable work leading us to these record results of which I’m very proud.
“Despite our enthusiasm, we remain cautious given the unstable economic context. We’re counting on exciting projects – especially in terms of repositioning our brand – to keep us heading toward success.
“We’re proud to support around fifty festivals across the province, and we’re thrilled that so many Quebecers were able to enjoy them this summer. We encourage events whose corporate social responsibility stands out and help them improve in this regard.”
Loto-Quebec also noted that several activities had been put on hold from April 1 to mid-June 2021.
“Increases over the first half of the pre-pandemic fiscal year (2019-2020) amounted to 3.5% for revenues and 9.4% for net income. Sound management by all sectors of the organisation resulted in an excellent ratio of total expenses to revenues of 27.9% – compared to 31% over the same period in the pre-pandemic year.”