Loto-Québec reports excellent results for fiscal year 2015-2016 - Revenues and net income on the rise

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Loto-Québec

Jun 10, 2016, 11:30 ET

MONTRÉAL, June 10, 2016 /CNW Telbec/ - Finance Minister Carlos Leitão submitted Loto-Québec's annual report to the National Assembly this morning. The Corporation reports increased income in all its sectors. During a year marked by a sharp increase in lottery revenues, Loto-Québec's total revenues increased by 6.7% and net income rose by 10%.

Overall results

  • Total revenues reached $3.560 billion (+6.7%).
  • Net income totalled $1.227 billion (+10%).
  • The profit margin climbed 1.1 percentage points to reach 34.5%.

Management favouring greater efficiency

  • The Corporation produced gains in efficiency of $95.5 million, exceeding the target.
  • Expenses totalled $963.7 million, representing an increase of only 0.9% compared to the previous fiscal year, despite inflation and higher salaries.

"While favourable circumstances certainly helped, the renewal strategy we implemented over the past two years and efficient management across all our sectors were the main drivers of our success," explained Simon Patenaude, Loto-Québec's Acting President and CEO.

Significant economic and social contributions

  • The dividend turned over to the Government of Québec reached $1.202 billion.
  • Lottery, bingo and Kinzo winners took home $960.8 million.
  • Purchases from companies conducting business in Québec totalled $262.2 million.
  • Investments in the fight against excessive gambling totalled $27.1 million.

An exceptional year for lotteries

  • The lottery sector recorded $1.798 billion in sales (+10%).

The increase is in large part due to Lotto Max's excellent performance, with sales that increased by $142.4 million. Lady Luck was on our side with the number of jackpots offered. For example, there were 540 Maxmillions ($1 million prizes) this year compared to 39 during the previous fiscal year. Loto-Québec awarded a record number of 96 prizes worth $1 million or more.

Casino popularity on the increase

  • Casino revenues rose by 3.8%, totalling $806.2 million.

The increased focus on entertainment, particularly with the organization of large-scale themed events, was extremely productive, as patronage increased by 5.9%.

Online gambling still very attractive

  • Espacejeux.com, Loto-Québec's online gaming site, recorded revenues of $66.2 million (+35.2%).

All types of products offered (casino games, lotteries, etc.) are gaining ground, and gaming on mobile devices is attracting more players. That said, Espacejeux.com's market share, as compared to all illegal online gaming sites, still represents only about 25%. It will therefore be important to continue efforts to channel offerings towards an honest and controlled framework, thus ensuring that profits benefit Quebecers. The measures to block illegal sites recently adopted by the National Assembly are designed to that purpose.

Gaming establishments that continue to please

  • The gaming establishment sector, which includes video lottery terminals in bars and brasseries, the two gaming halls, and bingo and Kinzo halls, recorded $980.3 million in revenues, an increase of 2.9% compared to 2014-2015.

Thanks to the introduction of new games and network optimization, revenues from video lottery terminals in the bar and brasseries network are up for the first time since the anti-tobacco law was adopted in 2006. The Salon de jeux de Québec remained as popular as before, and pull-tab tickets with progressive jackpots offered in network bingo halls still spur excitement.

Numbers at a glance

NET INCOME BY SECTOR ($M)
http://files.newswire.ca/799/Net_Income.png

REVENUES BY SECTOR ($M)
http://files.newswire.ca/799/Revenues.png

REVENUES AND NET INCOME ($M)
http://files.newswire.ca/799/Rev_&_Net_Income.png

The annual report is available on Loto-Québec's website. The English version will be available at a later date.

SOURCE Loto-Québec

Image with caption: "NET INCOME BY SECTOR (CNW Group/Loto-Québec)". Image available at: http://photos.newswire.ca/images/download/20160610_C1151_PHOTO_EN_710421.jpg

Image with caption: "REVENUES BY SECTOR (CNW Group/Loto-Québec)". Image available at: http://photos.newswire.ca/images/download/20160610_C1151_PHOTO_EN_710417.jpg

Image with caption: "REVENUES AND NET INCOME (CNW Group/Loto-Québec)". Image available at: http://photos.newswire.ca/images/download/20160610_C1151_PHOTO_EN_710425.jpg

Source and information: Patrice Lavoie, Corporate Director, Public Affairs, Press Relations and Social Media, Loto-Québec and its subsidiaries, 514-499‑5130, [email protected], twitter.com/patricelavoie

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Loto-Quebec