Atlantic Lottery incomes drop 12% due to the pandemic

Net income reduced from $395.4m in 2019-20 to $346.5m in 2020-21.
Net income reduced from $395.4m in 2019-20 to $346.5m in 2020-21.

Canadian provincial lottery operator register revenue dropped 12% in the year ended 31 March, as the Covid-19 pandemic continued to affect earnings.

Canada.- Atlantic Lottery Corporation saw revenue hit by the effects of the Covid-19 pandemic for the second straight year. Overall net income reduced from $395.4m in 2019-20 to $346.5m in 2020-21.

ALC chair C. Sean O’Connor said: “Like many businesses, we started our fiscal year with shutdowns in the hospitality and horse-racing industry, as well as at some retail locations.” He also said: “Throughout the year, necessary public health measures were brought in to curb localized outbreaks, which continued to affect all aspects of Atlantic Lottery’s operations.”

Net ticket sales came to $330.8m, which was up 8.5 per cent from 2019-20. However, net video lottery receipts were down 26.4 per cent to $292.8m, due mostly to the impact of health measures.

Atlantic Lotteries’ Red Shores gaming venues on Prince Edward Island revenue was down 36.7 per cent to $12.0m.

Nova Scotia narrowly led the way with $206.4m, down 8.1 per cent. Secondly comes New Brunswick, with $203.8m, a decline of 4.5 per cent. Meanwhile, revenue from Newfoundland and Labrador declined 21.6 per cent to $178.5m, while revenue from Prince Edward Island was down 16.7 per cent to $46.7m.

Atlantic Lotteries paid direct expenses of $112.0m, down 16.7 per cent. As a result, ALC’s gross profit came to $523.6m. The business then paid operating and administrative costs of $101.3m, down 8 per cent, and capital-related costs of $31.1m, down 6.8 per cent, as well as other expenses of $44.7m, an 8.2 per cent decline.

See also: Atlantic Lottery returns $346.5m profit to Atlantic Provinces

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