A reduction in Lotto Max sales played a leading role in decreased revenue for Loto-Quebec in Q1 of 2023-24, according to the Canadian crown corporation.
Publishing its results for the period April 1 – June 26, Loto Quebec reported total revenues of $711.2m and a consolidated net income of $380.9m, down $33.2m (-4.5%) and $65.6m (-14.7%) respectively compared to the same period last year.
The dip in revenues is “mainly” due to lower Lotto Max sales, Loto-Quebec asserts, as the lottery game had experienced an “exceptional sequence” of major grand prizes in Q1 2022-23.
This contributed to lottery revenues of $224.7m, down $31.9m (-12.4%) YoY, while online lottery revenues made up 12.8% of the sector’s total revenues.
Loto-Quebec’s total revenues and consolidated net income did increase by $54.9m (+8.4%) and $43.6m (+12.9%), respectively, from the first quarter of the pre-pandemic fiscal year, however.
Jean-François Bergeron, President and CEO, commented: “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.
“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.”
Meanwhile, Loto-Quebec hailed the “great results” of its casino and gaming hall sector which generated revenues of $274.6m, up $11.2m (+4.2%) YoY, attributable to the full resumption of operations. Online casino revenues represented 24.8% of the sector’s total revenues.
However, revenues from the gaming establishment sector dropped $11.6m (-5.1%) YoY to $216.9m.
Loto-Quebec added that it is “in the process of determining how best to continue managing the video lottery terminal offer in a responsible manner”, after the closure of many bars due to the effects of the pandemic.
Bergeron concluded: “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. 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.”
Elsewhere, Loto-Quebec was forced to admit defeat this week in its quest to launch a ‘mini casino’ in downtown Montreal, after receiving pushback from Montreal Public Health.