NZ Lotteries Announces Strong Sales and Earnings

Immediate Release 12 October 2010

NZ Lotteries Announces Strong Sales and Earnings

NZ Lotteries’ financial performance continues to be strong, said NZ Lotteries’ Chief Executive Todd McLeay, announcing the results for the 2009/2010 financial year.

“Sales reached $782.3 million with net profit of $159 million. While this result is down on last year’s record results, they are ahead of the more comparable year of 2007/2008.

“The previous year’s record sales of $907.7 million was largely driven by two massive ‘Must be Won’ jackpots, so we were not expecting sales to match that level in this financial year.

“However, we are pleased with our performance, given the tougher retail climate and the lower jackpot runs in this financial year. Both sales and net profit exceeded those of 2007/2008, by $4.3 million and $2.2 million respectively,” said Mr McLeay.

“These results mean that $159 million has been transferred to the NZ Lottery Grants board for distribution to New Zealand community, sports, arts and cultural groups. We are very proud to continue to support New Zealand through the funding provided by lottery profits.

“Results for the current year to date have continued to be good, with the large Lotto Powerball jackpot adding a boost to sales in recent weeks.

With the jackpot prize offer at $27 million this weekend, we are expecting our retailers to have a very busy week,” said Mr McLeay.

ENDS

NZ Lotteries’ 2010 Annual Report can be downloaded from www.mylotto.co.nz

Background information

Of every dollar spent on Lotto:
56 cents is spent on prizes
20 cents is transferred to the NZ Lottery Grants Board
10 cents is paid in taxes (includes GST, gaming duty)
7 cents is retailer commission
7 cents is NZ Lotteries operating costs

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