Premier Lotteries Ireland DAC (PLI), the operator of the National Lottery, has reported an operating loss of €7.7 million for the past year, primarily attributed to restructuring costs of €3.2 million. According to newly released financial accounts, PLI’s ticket sales fell by €54.7 million, or 6%, decreasing from €884.1 million to €829.4 million.
The financial statements also reveal that the amount distributed to good causes declined by €31.6 million, a 12% drop from €259.5 million to €227.9 million. Furthermore, prize money payouts decreased by €6.1 million, dropping from €484.9 million to €478.8 million. Despite the decline in prize money, it still represented 57.73% of sales in 2023, slightly up from 54.84% in 2022.
In their report, PLI’s directors explained that the actual prizes awarded in any given year are influenced by multiple factors, including sales levels, sales mix, prize structures, and the patterns of draw sequences. Under the terms of their lottery license, 65% of sales minus prizes must be allocated to fund good causes.
The significant operating loss of €7.7 million contrasts sharply with the previous year’s operating profit of €8.2 million, marking a negative swing of €15.9 million. Finance costs totaling €34.7 million contributed to a pre-tax loss of €42.4 million, doubling the pre-tax loss of €21 million reported in 2022.
Sales of draw-based games amounted to €531.5 million, down from €585.4 million the previous year, while sales from scratch cards and interactive instant win games were nearly flat at €297.7 million compared to €298.7 million in 2022. The number of retail agents in PLI’s network decreased from 5,225 at the end of 2022 to 5,195 by December 2023.
Digital sales accounted for €132.2 million, representing 15.9% of total sales, a slight decrease from €141 million and 16% in 2022. Non-trading costs, including the aforementioned restructuring and a €700,000 impairment loss on a tangible asset, further impacted the company’s financial performance.
Despite the losses, PLI received a capital injection of €501.4 million, which facilitated the repayment of a €100 million loan to its parent company, Premier Lotteries Ireland Midco. The company also paid out a dividend of €100 million and has recommended an additional €20 million dividend post-year-end.
Looking ahead, PLI’s directors emphasized their commitment to growing sales, expanding game offerings, and maximizing contributions to good causes. Staff numbers declined slightly from 214 to 207, while total staff costs fell from €19.1 million to €18.7 million. Directors’ remuneration for the year totaled €1.1 million, consisting of €1 million in emoluments and €100,000 in pension contributions.
In a significant development, PLI was sold to the French gaming company La Française des Jeux (FDJ) in July 2023 for €350 million, with the deal finalized on November 3. PLI holds the rights to operate the National Lottery until 2034, with the Ontario Teachers’ Pension Plan (OTPP) retaining an 80% stake and An Post holding 20% since 2014.
