Lottery ticket companies: Some places have record profits, others complain of continuous losses because customers are... too lucky.

Lottery is popular among many people - Photo: KHAC TAM

Ha Tinh Lottery: Heavy losses, police reported to stop gambling

The business picture of Ha Tinh Lottery Company attracted attention in the market when the People's Committee of Ha Tinh province issued a decision on special financial supervision. The company is mainly trading in three types of lottery tickets: traditional tickets (North), lotto tickets, and tickets with immediate results (scratch and peel).

Regarding the specific financial situation, over the past 5 years, this company has faced a steady decline in revenue, from nearly 40 billion VND (2019) to more than 27 billion VND (2023).

By the end of last year, the company had incurred an accumulated loss of more than 6.1 billion VND. Tax debt was also over 3.5 billion VND.

In the context of declining business and heavy losses, Ha Tinh Lottery recently gave an explanation with many reasons. The most prominent is the competition from Vietlott (computerized lottery), as well as customers choosing to play online.

Notably, the company said it had to pay high prizes "due to the luck of the players". Last year alone, it spent nearly 15 billion VND on this item, accounting for 55% of lottery ticket sales revenue.

At the same time, Ha Tinh Lottery is also under pressure because of the rapid development of lottery, while the preventive measures of the authorities are not strong enough and not continuous.

In addition, spending money to entertain delegations from many lottery companies in other provinces also affects the financial situation.

To overcome this, the lottery company has come up with plans to increase advertising and marketing, expand the market to rural areas where there are many people. Provide information about private lottery establishments to request local police to inspect and handle. Check to detect agents who take advantage of selling lottery tickets to record lottery numbers.

At the same time, reduce costs related to bonuses, direct issuance, and business management. Limit guests and meetings.

Ho Chi Minh City Lottery: Revenue of over 5,470 billion VND, record profit

In the same segment, Ho Chi Minh City Lottery Company received very positive business results. According to the financial report, in the first half of 2024, the company earned more than 5,470 billion VND in net revenue. Of which, traditional lottery tickets and scratch-off lottery tickets contributed greatly, in addition to money from office rental and printing services.

After deducting cost of goods sold and expenses, the company had a net profit after tax of nearly 790 billion VND, an increase of 19% over the same period last year, a record in nearly 46 years of business of Ho Chi Minh City Lottery.

In 2024, the company targets revenue of more than VND 13,680 billion and profit of nearly VND 1,690 billion, a slight increase compared to the previous year. It is expected to pay VND 3,750 billion to the state budget.

The company's total assets are nearly 3,100 billion VND, mainly cash and bank deposits. While liabilities are more than 1,375 billion VND.

Vietlott: Record revenue, big profit

Compared to many other businesses in the same industry, Vietnam Computerized Lottery Company (Vietlott) also has impressive achievements.

The financial report for the first half of 2024 shows that Vietlott recorded revenue of more than VND 3,250 billion, an increase of 33% over the same period last year, higher than the revenue of the whole year before the COVID-19 pandemic, setting a business record.

After deducting cost of goods sold, agent commissions, bonuses for lucky customers, management costs... the company still retains a profit after tax of 169.5 billion VND (up 16% over the same period last year, completing 79% of the plan for this year).

Thus, this is also the highest profit in the six-month period, exceeding the profit earned in the whole year at the time of the strong outbreak (2019-2021).

Contribute to the budget, contribute to investment in many fields

Lottery is a conditional business, subject to strict control by competent state agencies, to ensure meeting the entertainment needs of a segment of the population with legitimate income and ensuring security, order and social safety.

In 2023, revenue from lottery business reached more than 153,000 billion VND (+11% over the same period last year). Of which, about 50% was used to pay prizes, contributing to the budget more than 45,000 billion VND (+10%).

All lottery revenue is paid into the local budget and prioritized for investment in education - training, vocational training and healthcare. The remaining amount is spent on projects and investment projects to prevent natural disasters, combat climate change, and develop new rural areas...

Nationwide, there are 64 state-owned enterprises operating in the lottery business (63 lottery companies in 63 provinces/cities and Vietlott company).

Source: https://tuoitre.vn/cong-ty-ban-ve-so-noi-lai-ky-luc-noi-than-lo-trien-mien-do-khach-hang-qua-hen-20240925180700171.htm