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Third Quarter of the 2021–2022 Fiscal Year Loto-Québec Presents Strong Results

March 13, 2022 | Financial

Montréal, March 8, 2022 — Loto-Québec had a very good third quarter. For the period of September 28 to December 27, 2021, its total revenues and consolidated net income reached 90% and 94%, respectively, of their pre-pandemic levels, i.e. those obtained in 2019–2020. These results are very satisfactory given the public health measures that were in place, which included a reduction in capacity and hours of operation, as well as the suspension of most activities as of December 20.

During the third quarter of the 2021–2022 fiscal year, Loto-Québec generated total revenues of $619.9 million and consolidated net income of $324.7 million. This represents an increase of $225.5 million (+70.1%) and $177.7 million (+120.9%), respectively, compared to the third quarter of last year, when a number of the Corporation’s operations were again suspended due to the pandemic.

At the end of the first three quarters of 2021–2022, total revenues reached $1.703 billion and consolidated net income totalled $908.7 million, up $650.8 million (+61.9%) and $580.5 million (+176.9%), respectively, compared to the same period last year. Total revenues and consolidated net income reached 81% and 84%, respectively, of their pre-pandemic levels, while our gaming locations were open for less than 75% of the first three quarters of the current fiscal year.

The ratio of total expenses to revenues was 27.7% for the first nine months of the current year compared to 30.6% for the same period of the pre-pandemic year. This improvement occurred at a time when revenues were only 81% of what they were in the pre-pandemic year.

QUOTES FROM THE PRESIDENT AND CHIEF EXECUTIVE OFFICER

“Three quarters of the way through the fiscal year, we were very well positioned. If not for our activities being suspended on December 20, we would have met or exceeded our annual targets. Nevertheless, we remain focused on our objectives. The pandemic may have slowed us down, but it hasn’t stopped us. I’m extremely proud of the work of all our teams. Their efforts contributed greatly to our strong results,” said Jean-François Bergeron.

“After three quarters, the lottery sector is reporting record revenues. We paid out 105 prizes of $1 million or more since the beginning of the fiscal year, creating 89 new millionaires. We were pleased to welcome the winners of a $50 million Lotto Max jackpot to the new premises housing our prize claim office and the Salon de jeux de Québec, in Beauport. This new location opened its doors on November 29. Customers were thrilled with the result, as were we!” he added.

“We have continued our approach of solidarity with the community in various ways. For example, we donated food when our casinos closed and masks to community organizations. In addition, we donated $750,000 to Québec non-profit organizations through our first charity lottery game, Loto-o-suivant, and our Play to Give promotion in casinos and gaming halls.”

RESULTS BY SECTOR

For the period of September 28 to December 27, 2021
Lotteries

  • For the third quarter of 2021–2022, revenues in the lottery sector reached $235.0 million, down $11.4 million (-4.6%) compared to the same quarter last year.
  • This difference is largely due to the lower number of jackpots of $50 million or more offered by Lotto Max. It can also be explained by the greater number of Québec Max grand prizes won, which resulted in a higher payout rate, much to the delight of the winners.
  • Instant games and event betting saw an increase in sales. The much anticipated addition of single-event betting last August was well received by customers.
  • After three quarters, revenues in this sector were up $167.2 million (+28.7%) compared to the same period last year, and $79.9 million (+12.0%) compared to the same period in 2019–2020. This is a record since Loto-Québec’s inception.

Casinos and gaming halls

  • After an operating period that varied depending on the gaming location, and which was met with enthusiasm by our customers, land-based casinos and gaming halls had to suspend their activities again on December 20.
  • For the third quarter of 2021–2022, revenues in the casino and gaming hall sector reached $208.5 million, up $132.4 million (+173.7%) compared to the same quarter last year, when land-based casino and gaming hall activities were suspended for several days.
  • With revenues up $1.3 million (+2.1%), the online casino continued to grow, albeit at a slower pace due to the reopening of locations. Its revenues represented 30.3% of total casino revenues, compared to 9.4% for the same period in 2019–2020

Gaming establishments

  • After an operating period that varied depending on the gaming establishment, this sector’s activities had to be suspended again on December 20.
  • For the third quarter of 2021–2022, revenues in the gaming establishment sector reached $179.6 million, up $137.6 million (+327.6%) compared to the same quarter last year.
  • This difference is mainly due to the closure of many bar establishments and the complete suspension of bingo and Kinzo activities as of mid-October 2020, extending beyond the end of the quarter.

HIGHLIGHTS AND SOCIETAL CONTRIBUTIONS

Québec has 89 new millionaires since the beginning of the fiscal year thanks to the winning of 105 lottery prizes of $1 million or more.

  • A group of six Capitale-Nationale residents who won the $50 million jackpot in the November 12 Lotto Max draw had the opportunity to inaugurate the new premises of the Capitale-Nationale prize claim office, adjacent to the Salon de jeux de Québec.
  • The opening of the Salon de jeux de Québec at its new location in the Méga Centre Beauport was a great success.
  • The first customers were welcomed on November 29. The Hilton Lac-Leamy celebrated its 20th anniversary on October 8.
  • A campaign was initiated to inform the public that lotoquebec.com is the only 100% legal casino and sports betting site in Québec.
  • Loto-Québec launched Loto-o-suivant, its first charity lottery game. The 50 winners, who each won $10,000, chose a cause that was important to them to receive the same amount. A promotion in casinos and gaming halls also allowed us to give $250,000 to winners, with the same amount being donated to Québec’s Moisson food banks. A total of $750,000 was donated to Québec non-profit organizations.
  • The Centre du hasard information kiosks have a new name: Bien joué! These revamped spaces, located in casinos and gaming halls, have the same purpose: to inform customers about gambling and its risks, so that a game remains a game.
  • At this time when mutual aid and solidarity are essential, Loto-Québec has made the Casino du Lac-Leamy parking lot available to the Centre intégré de santé et de services sociaux de l’Outaouais, which has set up an in-car COVID-19 testing centre.
  • When operations at its casinos were suspended at the end of December, the Corporation immediately donated food from its restaurants to food assistance organizations. It also donated one million protective masks to the Welcome Hall Mission.
  • Loto-Québec has enhanced its health and wellness program for its employees. Named VitaSanté, it encompasses concrete measures aimed at promoting overall health and prevention.
  • The Corporation participated in HUB Montréal, the international market for digital creativity, highlighting the latest trends among creative industries in the culture and entertainment sectors. It presented a $5,000 Innovation Award.

The quarterly report [PDF – 2 MB, in French only] is available on Loto-Québec’s website.

SOURCE: Loto Quebec

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