HCMC lottery firm reports record H1 profits
In this article (5)
The HCMC Lottery Company Ltd. earned profits of VND736 billion (over $31.46 million) in the first half of the year, an increase of 27% year-on-year.
The company recorded H1 revenues of VND5.46 trillion, completing nearly 54% of the year’s target, the company said in its financial statement.
The main source of income was the sale of traditional lottery tickets and scratch-off tickets; and the rest from office leasing and printing.
The company leaders said that from the beginning of the year until mid-July, the company had paid out more than VND2.8 trillion to lottery winners
After deducting all expenses, the company made a profit of VND736 billion. This was a record high in the company’s history.
The company’s revenue and profits have been increasing steadily over the last 10 years.
Current sales are twice as high as they were in the first half of the year 10 years ago, and profits have increased three-fold.
The company’s management said demand for lottery tickets in the southern region has grown continuously, and the Ministry of Finance has increased the ticket volume by 10% to cover a larger area and expand its agent network.
The scratch-off lottery, which has been in operation since the end of 2018, has also been successful, covering nine provinces and accounting for 4-5% of annual revenue.
The company’s total assets exceed VND2.6 trillion, while its liabilities exceed VND900 billion. Cash and bank deposits account for a sizable portion of the asset structure.
This year, the company expects revenues of VND10.15 trillion and pre-tax profits of VND1.17 trillion. Its payment to the state budget is estimated at around VND3.04 trillion.
Questions & Answers
Q.What were the main sources of revenue for the HCMC Lottery Company in the first half of the year?
What were the main sources of revenue for the HCMC Lottery Company in the first half of the year?
The primary income came from selling traditional lottery and scratch-off tickets. Additional revenue streams included office leasing and printing services.
Q.How much has the company's profitability grown over the past decade?
How much has the company's profitability grown over the past decade?
The company's profits have tripled in the last 10 years compared to the first half of the year a decade ago. Sales have also doubled during the same period.
Q.What factors have contributed to the increased demand for lottery tickets?
What factors have contributed to the increased demand for lottery tickets?
Demand in the southern region has grown continuously. The Ministry of Finance increased ticket volume by 10% to expand coverage and the agent network. The scratch-off lottery has also been successful.
Q.What are the company's financial expectations for the full year?
What are the company's financial expectations for the full year?
The company anticipates revenues of VND10.15 trillion and pre-tax profits of VND1.17 trillion for the full year. Payments to the state budget are estimated at approximately VND3.04 trillion.
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