The restart of sports events were not enough to help Lottotech, as the pandemic continues to threaten Mauritius' economy
Lottotech, operators of the Mauritius national lottery, has faced major setbacks. The setback includes a decline in revenue due to the current pandemic and the increase of income taxes.
The operators who were forced to shut down gaming activities from 20th March, as the country went into lockdown, had a decline in revenue from July to September from MUR 305.2m to MUR 302.7m, decreasing by 0.8% when compared to the previous year.
However, now that sporting events are back to their original schedule, operators managed to record revenue of MUR 311.1m in Q3 that nearly tallied the amount expected in the first six months of the year.
The net costs for Q3 was MUR 424,853 which left Lottotech with a gross profit amounting to MUR36m, a fall from the 5% profit it recorded last year. The increase in income tax had the operators paying MUR9.6m in Q3, compared to the MUR5.8m paid the previous year. When taking into account the previous year, revenue also decreased by 33% from MUR952.2m to MUR633.8m by the end of September. Furthermore, the income tax payment within the three quarters of the year totaled to MUR18.7m. Therefore, the added income tax and the decrease in revenue resulted in net profit falling by 69.3%, totalling MUR31.5m.
The operator explained that “Covid 19 outbreak continues to pose a serious threat in Mauritius with no visibility when vaccines will be available. 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.”
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