Loto-Québec achieved year-over-year improvements in revenue and net income in 2022-2023, the operator’s best performance since the introduction of the Tobacco Control Act in 2006.
The operator added that the casino and gaming hall sector registered a record as well, with revenue in the vertical growing by almost 70 per cent YoY.
Good year for Loto-Québec
For 2022, Loto-Québec reported total revenue of CA$2.99bn, a 35.2 per cent increase YoY (2021: $781.3m) with a consolidated net income of $1.6bn, up 40 per cent YoY (2021: $456.8m) since the previous year was affected by venue closures.
When compared to pre-pandemic results, revenue for the year rose by 9.4 per cent while net income grew by 18.2 per cent, improvements which the operator attributes to “sound management efforts across all sectors”.
Loto-Québec noted that 2022 was the operator’s best performance since the Tobacco Control Act was introduced in 2006, “significantly impacting traffic at gaming establishments”.
The operator added that a ratio of total expenses to revenues of 29.2 per cent was achieved following the streamlining of operations, close to pre-pandemic levels of over 33 per cent as customers showed “enthusiasm as they reconnected with entertainment activities” in addition to all teams meeting expectations.
A dividend of $1.6bn was also paid by Loto-Québec to the local government.
President and CEO Jean-François Bergeron commented: “Our teams came together to provide the people of Québec with the gaming and entertainment experience Loto-Québec is known for, and their work and the overall sound management yielded exceptional results.
“We have our talented and dedicated employees to thank for being in such a good position after some difficult years. There’s a lot to be proud of when you consider that 100 per cent of what we generate goes back to the people and province of Québec.”
Casinos & gaming halls lead the way
Online operations accounted for 13.5 per cent of Loto-Québec’s total revenues with $403.9m, up 3.3 per cent compared to the previous year. The operator noted many people who wagered online during the pandemic still do, and improvements have been made to the website and the responsible gambling tools available.
Per vertical, casinos and gaming halls generated the most revenue during 2022 with $1.1bn, a 67.6 per cent increase YoY although the previous year had been impacted by venue closures.
Online casino revenue rose as well, improving by 1.7 per cent to $269.9m, accounting for 24.5 per cent of all casino revenue.
Lottery revenues fell by 1.1 per cent YoY to $996.1m. However, the operator noted this was “still an excellent result” as it follows what was a record year for the vertical. Online lottery sales rose by 5.4 per cent to $124.2m, 12.5 per cent of the vertical’s total revenue.
Gaming establishments – which include VLTs in bars, event betting, Kinzo and network bingo – reported revenues of $922.2m, up 64.6 per cent YoY due to location closures the previous year and operations this year being uninterrupted. VLT revenues also remained comparable to pre-pandemic levels.
Investment in responsible gambling
Loto-Québec awarded $1.5bn to winners during 2022, paying individual record jackpot amounts in Lotto Max and three-card poker. The operator also invested $33.6m into responsible gambling services, rolling out tools for online and land-based operations, training for employees and retailers and contributing to research projects.
The operator added over 50 social responsibility events across Québec received support throughout the year, while initiatives to reduce its environmental footprint and greenhouse gas emissions were also implemented.
Bergeron added: “True to our commitment to conduct our business in a socially responsible manner, we approached every decision with this lens, and paid particular attention to our gaming website.
“In addition to promoting the responsible gambling tools offered on lotoquebec.com, we made a concerted effort to counter the advertising of illegal gambling websites and to inform the public that ours is the only 100 per cent legal gaming website in Québec.
“Our support of the visual arts and of many festivals and events across Québec is one of our major contributions. We’re also proud to support many causes and organizations such as the Moisson food banks, the Fondation Les Petits Rois and AlterGo. It’s also worth mentioning that we have made strides in our environmental sustainability efforts.”