Loto-Québec, the provincial lottery operator, has released its financial results for the first quarter of the fiscal year 2023-2024. The company reported revenues of CA$711.2 million ($528.2 million) and a net income of CA$380.9 million ($282.9 million). While the figures showed a decline compared to the previous year, there were positive signs of recovery, with revenue surpassing pre-pandemic levels.
Financial Performance Highlights:
Revenues: Loto-Québec achieved revenues of CA$711.2 million, reflecting an 8.4% increase (CA$54.9 million) compared to pre-pandemic numbers. However, revenue was down by 4.5% year-on-year.
Net Income: The company reported a consolidated net income of CA$380.9 million, demonstrating a noteworthy 12.9% increase (CA$43.6 million) compared to 2019. Nevertheless, net income declined by 14.7% year-on-year.
Segmented Revenue Analysis:
Casino Revenue: Loto-Québec’s casino revenue for the period between April 1 and June 26 was CA$274.6 million, marking a 4.2% year-over-year increase. A notable portion of this revenue, almost 25%, was attributed to online casino activities.
Lottery Revenues: The lottery segment generated revenues of CA$224.7 million, representing a 12.4% decline compared to the previous year.
Cancellation of VLT Project:
Loto-Québec made headlines by announcing the cancellation of its plans to install approximately 300 video lottery terminals (VLTs) near the Bell Centre in downtown Montreal. This decision came in response to Montreal Public Health’s opposition to the project, citing concerns about the location and its association with Groupe CH. While Loto-Québec respected the opinion of Montreal Public Health, it viewed the cancellation as a “missed opportunity.”
Loto-Québec’s Q1 financial results highlight both challenges and opportunities. Despite a decline in net income compared to the previous year, the company achieved higher revenues, surpassing pre-pandemic levels. The success of the online casino segment and the cancellation of the VLT project near the Bell Centre underscore the dynamic nature of Loto-Québec’s operations and its responsiveness to evolving circumstances.