Loto-Québec expects another $1.5-billion profit as casinos lead growth
The Crown corporation's casino and gaming lounge segment grew more than seven per cent in the third quarter, and its CEO sees room for more lounges.
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Loto-Québec says it is on track to deliver a net profit of about $1.5 billion to the Quebec government for a fifth straight year.
The Crown corporation reported higher revenue and net income for its third quarter, which ended Dec. 29. Revenue topped $765 million, up 4.3 per cent from a year earlier, The Canadian Press reported. Net income was more than $361 million, up 0.2 per cent.
After three quarters, net profit stood at $1.139 billion, up 0.6 per cent. President and CEO Jean-François Bergeron said he expects to reach $1.5 billion by the end of the fiscal year on March 31.
"We're going to hit the targets we set for ourselves," Bergeron said in an interview.
Casinos post strongest growth
The casino and gaming lounge segment grew faster than any other part of the business, rising more than seven per cent in the third quarter. It made up nearly a third of Loto-Québec's revenue as of Dec. 29.
Bergeron credited the diversity of Loto-Québec's offerings, including its casinos, gaming lounges and other venues, for holding results steady while households are being careful with spending.
In December, the corporation announced a fourth gaming lounge, to open within two years at the Delta hotel and convention centre site in Saguenay. Bergeron said there is still room for more lounges in Quebec, though he did not name a number.
He said many municipalities ask to host one, but Loto-Québec wants to move carefully. It prefers sites near hotels or convention centres, as in Saguenay and Rimouski, to add to the tourism offering. The goal is to capture existing gambling demand rather than grow it, he said, and the corporation seeks local social acceptance first.
Fewer bars with terminals
The lounges are also part of a plan to cut the number of bars that host Loto-Québec's terminals. Bergeron described the aim as fewer but better venues. Since 2023, the number of establishments has fallen 13 per cent, while terminal revenue in bars has stayed relatively stable.