Canadian lottery provider Loto-Québec has reported a 2 percent drop in total revenues to CAD$3.7bn for the year, ended March 31st 2011. The financial results include the first contributions from its EspaceJeux.com online gaming site which has generated revenues of approximately $7m since its launch last December.
Minister of Finance, Raymond Bachand, submitted to the National Assembly Loto-Québec’s annual report for the financial year beginning April 1, 2010 and ending March 31, 2011.
The Corporation reported consolidated revenues of $3.675 billion and net earnings of $1.338 billion for the period. According to the report, strict expense control allowed Loto-Québec to show net earnings similar to last year’s figures, despite an $80 million decline in sales.
In so doing, the Corporation exceeded the expense reduction and increased productivity goals that had been set by the government as part of its law to return to a balanced budget. In this regard, Loto-Québec achieved reductions of $14.9 million against a target of $5 million in 2010-2011.
Highlights of the report include: Video lottery revenues decreased by 4.0% due to the economic slowdown and reduced network size, bingo activities weakened by 2.2% despite the introduction of Kinzo, a collective gaming concept that supports non-profit organizations whose source of financing was lost when bingo halls closed.
As for EspaceJeux.com, at the end of the first four months of operation, results are in keeping with estimates: 37,753 subscribers, of which about 60% were considered active, and revenues of $7 million.
This can be looked at as positive considering the current offering for EspaceJeux.com isn’t comparable to the highly developed offerings of many international gaming sites. Loto-Quebec’s report did indicate that development of a complete and competitive offering will continue over the coming years.