Big Improvement In New Zealand Lotteries'

14 October 2004

Big Improvement In New Zealand Lotteries' Result For 2003/2004

An extremely strong first six months, driven by several Powerball jackpots, and a solid performance in the third and fourth quarters, meant New Zealand Lotteries Commission (NZLC) had sales and profit results well above those of the previous financial year, NZLC Chief Executive Trevor Hall announced today.

Mr Hall said NZLC's Annual Report showed that over the past year the organisation had achieved a significant turnaround in its performance.

Sales for the year were 16.4% above the last financial year at $628.8 million. Strong sales coupled with low operating expenses resulted in NZLC making a profit of $133.45 million, 24% ahead of last year.

Achieving a strong financial result allowed NZLC to give more money back to New Zealand communities," said Mr Hall.

"We were delighted to transfer $118.45 million to the Lottery Grants Board to fund arts, sporting and community projects throughout New Zealand, $10.65 million more than in the previous year," he said.

"NZLC's financial performance over the past year was, by any measure, an exceptional one. The number of very large Powerball jackpots we had was statistically abnormal and cannot be expected to recur every year.

"To achieve long-term sustainable growth we must continue to make fundamental changes to the business," said Mr Hall.

He said the first major change to occur was the revamp of Lotto in August this year, the biggest since the game began in 1987. These changes, including the introduction of Winning Wheel, had been received positively by customers.

"In looking forward we are focussing on four major areas for investment: continuing to revitalise Lotto, developing new games, expanding and optimising NZLC's retail network and replacing our gaming system.

"These initiatives, due to come to fruition over the next three years, will place NZLC in a strong position to underpin continued success," said Mr Hall.

ENDS

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