Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Lotteries Commission Reports Better Earnings Trend


MEDIA RELEASE 14 August 2002

For Immediate Release

Lotteries Commission Reports Better Earnings Trend

The New Zealand Lotteries Commission today reported a better earnings trend, with the fall in underlying profitability year on year reducing from around 10 per cent for the previous 12-month period to just two per cent for 2001-02.*

CEO Ariane Burgess said the earnings result of $113.063 million was a pleasing performance, given the very competitive nature of the discretionary income market and the ever-increasing number of poker machines.

It was equally pleasing that the result was within one per cent of the annual budgeted figure, also a significant improvement on previous years.

“Final earnings have been slightly impacted by the Powerball cycle, with the win just before year-end tipping us slightly below budget. But the underlying result is basically on target,” Mrs Burgess said.

Three factors have contributed to this year’s performance:

- the beneficial impact of Powerball and Strike on the Lotto suite revenue stream;
- tight cost control; and
- an improved cost of sale ratio brought about by the withdrawal of the unprofitable gameshow Risk and the move away from uneconomic Superdraws.

The earnings result was generated from reduced sales of $560.8 million. -

“Support for Lotto continues to reduce, but to a significant extent this has been compensated for by strength in both Powerball and Strike revenues,” Mrs Burgess said.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“Overall, performance of the Lotto suite (Lotto, Powerball and Strike) has been fairly flat, which gives us a reasonable base for the launch of our exciting ‘New Lotto’ product in a couple of months’ time.

“This result means NZLC was able to achieve its agreed payment of $119 million to the Lottery Grants Board for the 2001-02 year, with the balance, as agreed at the beginning of the year, coming from reserves,” Mrs Burgess said.

NZLC has agreed with the Lottery Grants Board to deliver the sum of $105 million for 2002-03, reflecting the continuing challenges and restrictions of the New Zealand lotteries market.

“However, with the launch of ‘New Lotto’ in the second quarter of the year, we are very hopeful that we will better this figure,” Mrs Burgess said.

* Note that all comparisons are based on 52-week years. For the 2000-01 financial year there were 53 Saturdays and therefore 53 Lotto draw weeks.


© Scoop Media

Advertisement - scroll to continue reading
Business Headlines | Sci-Tech Headlines

GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.