Revenues up, profits low at state-owned lottery company
While revenues have grown since 2015, profits show a reverse trend at state-owned lottery company Szerencsejáték Zrt. Sports betting is popular, but not very profitable.
State-owned lottery company Szerencsejáték Zrt. expects its revenues to rise more than 10% to HUF 420 billion this year, deputy CEO Zoltán Cselovszki told the business daily Világgazdaság today. In 2016, revenue rose 10% to HUF 386 bln.
The challenge is now to raise profits at a similar pace to revenues, Cselovszki said, noting that after-tax profit had dropped to HUF 16 bln last year from HUF 19.2 bln in 2015.
The margin on sports betting is far below that of lottery-type of games, he said. While lottery games have a payback rate of 46-48%, in the case of sports bets (Tippmix) it is 75% and even 85% at TippmixPro. Sports betting accounted for about 44% of Szerencsejátékʼs revenue last year, which rose to 48% this year, according to preliminary figures.
Szerencsejáték plans to make near field communication (NFC)-based betting technology available by the end of this year, Cselovszki added.
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