Lottery tickets sold on the streets in Vietnam. Photo by Shutterstock
The long shadow cast by Covid-19 saw the profits of many traditional lottery companies drop by double digits last year.
The An Giang Lottery Company earned revenues of more than VND3.3 trillion ($143.68 million) and after tax profits of VND344 billion in 2021, a drop of 25 percent and nearly 44 percent, respectively, over 2020.
The company’s revenues and profits plunged despite a decrease in management costs and bonuses.
The Long An Lottery Company made VND2.86 trillion and VND433 billion in profit last year, completing 70 percent of the targeted plan.
Business was significantly slow at the Hau Giang Lottery Company with total revenues and after tax profits of VND2.34 billion and VND175 billion last year, respectively, down more than 19 percent and nearly 27 percent year on year.
Other lottery companies in Dong Nai, Dong Thap, Ho Chi Minh City and Ben Tre provinces are yet to release their final 2021 financial statements, but the majority of these groups have also recorded a decrease in revenue and profit.
Lottery company leaders blame the pandemic for their poor performance.
Leaders of the An Giang Lottery Company said several ticket sellers had to close down in 2021 when social distancing orders were in place. As a result, lottery companies in the southern region stopped issuing tickets for an extended period, resulting in a significant drop in revenue.
The Long An Lottery Company said overheads during lockdown had dragged down the company’s profits.
Although the pandemic lingers, business outlook has improved after the southern provinces and Ho Chi Minh City lifted lockdowns and entered the new normal.
Many lottery companies anticipate significant growth in 2022. For instance, the An Giang Lottery Company has set a revenue target of VND5.4 trillion and after tax profits of VND530 billion.
The Hau Giang Lottery Company expects revenues of VND2.97 trillion and after tax profit of 220 billion VND this year, a year-on-year increase of 19 percent and 25 percent, respectively.