Lottotech Limited’s Revenue Growth of 23% Increases Earnings per Share to MUR85.1m

Published On: July 31, 2023Company: Lottotech Limited (LOTTO.mu)

What are the implications of the Company's performance for its stakeholders?: The Company's performance for the half year ended June 30th 2023 demonstrates strong revenue growth and improved profitability. This demonstrates increasing value to shareholders in the form of rising earnings per share and dividends. The Company’s actions to focus on new revenue streams and optimizing its cost structure point to a commitment to create value for stakeholders.

Principal Activity

Lottotech Ltd is the operator of the Mauritius National Lottery on behalf of the Government of Mauritius. Its main activities are related to the gaming sector.

Results

For the half year ended 30 June 2023, the Company reported a revenue of MUR774.6m (June 2022: MUR630.1m) and Profit after tax of MUR85.1m (June 2022: MUR58.8m).
The increase in revenue and profit after tax was mainly attributable to the MUR100m Loto jackpot in Quarter 1.
Higher aggregate Loto jackpots of MUR1.07bn achieved as at 30 June 2023 (June 2022: MUR883M) have also contributed to improved revenue.
Loto Vert enhancements have generated additional revenue, with a 42% increase compared to prior year corresponding six months period.
It is to be noted that the average amount played stayed within the range of MUR80 to MUR100 demonstrating the effectiveness of the Company’s responsible gaming programme.

Net Cash Flow

Net cash used in operating activities of MUR19.3m was mainly attributable to working capital changes with payment made to consolidated funds and for corporation tax.
Net cash used in financing activities of MUR110M was mainly due to dividend paid of MUR102m in May 2023.

Outlook

The Company will continue to focus on new revenue streams creating more value for its stakeholders as well as optimizing its cost structure.

Earnings per Share

The calculation of earnings per share is based on the profit attributable to the shareholders of the Company MUR85.1m (June 2022: MUR58.8m) and the number of the shares in issue of 340,000,000 (June 2022: 340,000,000).

Dividend

A final dividend of MUR102m (2022: MUR74.8m) was declared on 27 March 2023 and payable by latest 05 May 2023 in respect of the financial year ended 31 December 2022.

Others

The abridged consolidated financial statements for the half year ended 30 June 2023 are unaudited. The accounting policies and standards used in the preparation of these abridged unaudited consolidated financial statements are consistent with those used in the audited consolidated financial statements for the year ended 31 December 2022, except for relevant amendments to published standards issued and which are effective as from 1 January 2023. This interim report complies with IAS 34. Copies of the above abridged unaudited consolidated financial statements are available, free of charge, upon request made to the Company Secretary, at the registered office of the Company, Royal Road, Chapman Hill, Beau Bassin, or can be viewed on the Company’s website www.lottotech.mu. The statement of direct and indirect interests of insiders pursuant to rule 8(2)(m) of the Securities (Disclosure Obligations of Reporting Issuers) Rules 2007 is available, free of charge, upon request made to the Company Secretary, at the registered office of the Company.

Useful links

About Lottotech Limited (LOTTO.mu)

Lottotech Limited is a company headquartered in Ebène Mauritius that manages the Mauritian National Lottery for the Mauritian government. The company distributes its product through a broad network of retailers. Lottotech Limited is listed on the Stock Exchange of Mauritius

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

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