Canada: Loto-Québec's total revenues down by almost 15% to $528M in Q1 of FY2023/24

Canada: Loto-Québec's total revenues down by almost 15% to $528M in Q1 of FY2023/24
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Loto-Québec, the crown corporation that oversees lottery and gaming in the province of Quebec, has shared its financial results for the period from April 1 to June 26, 2023. During the quarter, the business generated total revenues of CAD 711.2 million  ($528.1 million) and a consolidated net income of $380.9 million ($282.8 million). While down on a year-on-year basis, Loto-Québec said the results "exceed the corporation’s expectations" and "are in line with its growth trajectory."

It is also important to note that this performance "follows an exceptional year," according to the corporation's report, which implied tough comparatives for this year's results. In the first quarter of last year, Loto-Québec posted a marked increase of 13.4% in total revenues and 32.4% in consolidated net income over the same pre-pandemic period.

In the first quarter of this fiscal year, Loto-Québec’stotal revenues and consolidated net income increased by CAD54.9 million ($40.7 million), and CAD43.6 million ($32.3 million, respectively, from the first quarter of the pre-pandemic fiscal year. However, they decreased by CAD33.2 million ($24.6 million) or 4.5% and CAD65.6 million ($48.7 million) or 14.7%, respectively, compared to the same period last year.

The dip in revenues compared to last year is mainly due to lower Lotto Max sales. The difference in net income is primarily attributable to higher expenses resulting from the full resumption of on-site operations after pandemic-related restriction periods.

Jean-François Bergeron, President and CEO, said: "I'm very pleased with our teams’ efforts and the results achieved. I’d like to point out that we had an exceptional year last year, which set the bar very high. I thank our employees for their invaluable contribution. They have managed to stay the course and deal with the challenges of the past few years."

If broken down by segment, the casino and gaming hall sector generated revenues of CAD274.6 million ($203.9 million), up 4.2% over the same quarter in 2022–2023. These results were attributable to the full resumption of operations. Meanwhile, online casino revenues represent 24.8% of the sector’s total revenues.

Lottery revenues stood at CAD224.7 million ($166.8 million). This represents a decrease of 12.4% over the same quarter the prior year. The difference is largely due to lower Lotto Max sales, as the lottery game experienced an exceptional sequence of major grand prizes at the same time last year. Online lottery revenues represent 12.8% of the sector’s total revenues.

Revenues from the gaming establishment sector amounted to CAD216.9 million ($161.06 million). This represents a drop of 5.1% over the same quarter last year. Furthermore, according to the report, bars were hit hard during the pandemic, resulting in many being closed. As this trend appears to be reversing and retailer demand for terminals remains high, "the corporation is in the process of determining how best to continue managing the video lottery terminal offer in a responsible manner," the business stated.

"All sectors have continued to exercise sound management, despite the increase in spending caused by the full resumption of operations. Thanks to these efforts, we’ve once again achieved an excellent ratio of total expenses to revenues," the CEO added.

Quarterly highlights and CSR contributions

Québec has gained 20 new millionaires since the beginning of the fiscal year. These winners shared the 26 lottery prizes of CAD1 million ($742,665) or more won between April 1 and June 26. The total amount awarded to lottery, Kinzo, and network bingo winners during the quarter was CAD373.6 million ($277.4 million).

Tickets for the new PLINKO lottery game were made available at retailers and online on May 1. The game, which offers a host of instant prizes, allows the winners of a “PLINKO” prize to be welcomed at the Casino de Montréal, where they drop a chip on a life-size PLINKO board for a chance to win between $100,000 and $500,000.

The 'So that a Game Remains a Game' campaign, which ran from May 8 to June 25 was designed to remind Quebecers that they can count on responsible gambling tools, measures, and programs when playing Loto-Québec games or visiting its gaming locations. The campaign has been relaunched in September.

Furthermore, Loto-Québec was a partner in festive, inclusive, and socially responsible events across the province during the period. An advertising campaign launched on May 15 invited Quebecers to attend one of the many festivals that are part of the Rendez-vous Loto-Québec. Additionally, Loto-Québec is the presenting partner of BIXI Montréal. BIXI stations and bicycles will sport the Loto-Québec logo for the next three years.

"We saw many noteworthy achievements this quarter, including the first responsible commercialization campaign featuring all game categories. Called So that a game remains a game, it demonstrates the importance we place on our customers’ well-being," Bergeron

"The spring quarter also coincided with the start of festival season. We’re proud to encourage the growth of entertainment and culture and make them more accessible to Quebecers through our sponsorship program, Les Rendez-vous Loto-Québec," the executive concluded.