Media Release
6 March 2009

Powerball Jackpot Drives Exceptional Half Year Result for NZ Lotteries

An unprecedented sixteen-week Powerball jackpot run, which seized the imagination of the nation, has led to an exceptional sales result for the six months ended 31 December 2008, NZ Lotteries' Chairman John Goulter and Chief Executive Todd McLeay announced today.

Sales for the period were $442.3 million, $70.3 million (18.9%) ahead of the same period last year. The net surplus for the half year amounted to $92.3 million, $19.9 million (27.5%) above the same period last year.

"This outstanding result was primarily driven by our core Lotto family of brands (Lotto, Powerball and Strike) - sales for the six months were $322.2 million, up by 34.7% on last year. This was largely due to the Powerball jackpot run that culminated in a $30 million 'Must Be Won' draw in October 2008, and resulted in NZ Lotteries' best-ever sales week. Statistically, a jackpot run of this length will occur, on average, once every four or five years," said Mr McLeay.

"Week to week, NZ Lotteries' sales are also holding up well despite the current adverse economic climate. This is pleasing, as sales of lottery products are a significant contributor to the success of 1,000 retailers throughout New Zealand and more than 4,000 staff are employed as Lotto operators," said Mr Goulter.

"Due to the exceptional half year results, and because weekly sales are proving resilient, we are very confident of being able to significantly increase our projected payment to the NZ Lottery Grants Board for distribution to sports, arts, heritage and community groups throughout the country," said Mr Goulter.

"At a time when many community groups are struggling for funding, it is pleasing to be able to maintain a good level of return to the NZ Lottery Grants Board for redistribution to worthy causes," said Mr Goulter.

In the past six months NZ Lotteries also celebrated Lotto's 21st birthday, introduced a new luxury prize line up and popular advertising changes for Big Wednesday, and revamped the Instant Kiwi communications campaign.

"We are aware that the real measure of success in our advertising is whether it strikes the right chord with the New Zealand public and helps to maintain interest in our products. However, we were delighted that our 'Old Flame' Lotto ad won the World Lottery Association's 'Grand Global Advertising Award' for the best advertisement in 2008 during the period," said Mr McLeay.

Seventy-one players won Lotto First Division in six months, winning an average of $452,618 each. The top Powerball prize was struck three times, with prizes of $3.2 million, $5.2 million and $7.7 million. There were also five Powerball Second Division winners who each won $6.1 million in the $30 million 'Must Be Won' draw. Four players won Big Wednesday First Division winning prizes worth between $2.9 million and $3.1 million.

ENDS

The NZ Lotteries 2009 Half Year Report can be viewed at: www.mylotto.co.nz.

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