Finance

Lower revenue pushes profit down at Lottotech in Q3

2 minutes read
Lottotech, operator of the Mauritius national lottery, has reported a year-on-year fall in net profit for its third quarter following a decline in revenue and increase in income taxes.

Revenue for the three months through to 30 September totalled MUR302.7m (£5.8m/€6.4m/$7.6m), down 0.8% from MUR305.2m in the same period last year.

Lottotech continued to be affected by the ongoing novel coronavirus (Covid-19) pandemic in Q3, though the quarter proved to be more successful in terms of revenue than the first half of the year.

The operator was forced to suspend operations between 20 March and 6 June as the country went into lockdown, and though certain restrictions remain in place, they had less impact in Q3.

Incidentally, revenue in Q3 almost equalled the MUR311.1m that Lottotech was able to generate in the first six months of the year.

Looking at costs, net finance costs for Q3 amounted to MUR424,853, which left the operator with an MUR36.0m profit before tax, down 5.0% on last year.

Lottotech paid MUR9.6m in income tax during Q3, compared to MUR5.8m last year, which left it with an MUR26.4m net profit, a fall of 17.8% on 2019.

“The Covid-19 outbreak continues to pose a serious threat in Mauritius with no visibility when a vaccine will be available,” Lottotech said.

“Lottotech continues to adopt all necessary measures to ensure the safety of its employees, customers and partners. The financial performance for the remainder of the year will be subject to volatility and uncertainty.”

In terms of Lottotech’s year-to-date performance, revenue in the nine months to the end of September was MUR633.8m, down 33.4% from MUR952.2m at the same point in 2019.

Finance income was MUR370,386, meaning operating profit for the period stood at MUR50.2m, down 59.2% year-on-year.

Lottotech paid MUR18.7m in income tax during the three quarters, leaving it with a net profit of MUR31.5m, a fall of 69.3%.

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