THE Jamaican Lottery Company (JLC), has posted positive for the period ending October 2003.
Gross revenues for the 10-month (unaudited) period were estimated at $1.5 billion, resulting in a much better annualised performance for the company, than for the year 2002.
The company attributes its success to the recently implemented efficiencies, performance of its Lotto brand, sale of phone card minutes from its lottery terminals and the improved performance of its Cambio Express operations.
Operating profit for the ten-month period is estimated at $50 million, a significant improvement over last year.
Executive Director of JLC, Mr. Howard Mitchell, expressed the view that "the measures taken earlier this year to re-engineer the organisation and to introduce operating efficiencies, have positively changed the trajectory of the business."
Mr. Mitchell also said that "Our restruction exercise in the first quarter of this year resulted in tighter management of our resources. The management and staff have responded well and our performance is clearly attributable to their belief in the vision put forward by the Board."
MARKETING INITIATIVES
Strong and innovative marketing initiatives have helped to improve revenue flow.
Sonia Davidson, the company's Marketing & Promotions Manager, believes that the aggressive marketing thrust of the gaming brands in the second and third quarters of the year, have helped the company's bottomline. According to Davidson, "The Lotto game, even though in the mature stage of its product life cycle, has been our mainstay. Efforts were made to bring the brand back in the face of the public, with aggressive advertising techniques and promotional sponsorships, such as Lotto Race Days and community road shows."
The company expects, based on its reported performance for the 10-month period, to surpass the $2 billion mark in gross revenues by year-end, for its gaming brands.
This would bring good returns for its stakeholders, as the company would then return to its pre-2000 profit-making ways.
Responding to the effects of the lottery winnings tax on the company's performance, Mitchell said "Fortunately, the company only experienced a slight dip in sales, in the early days of September, when the tax was introduced. Our team decided that we would be proactive and positive. We redoubled our marketing and sales efforts, which have seen the company coming out with a satisfying operating profit after only 10 months in the financial year. We have proven that a motivated staff, given clear direction from the Board of Directors, can achieve a turnaround even in adverse conditions."
JLC is due to undergo further transition and changes in the near future, with negotiations now almost complete, for Supreme Ventures Limited (SVL), to acquire its shares.
According to Mitchell, "The staff and agent base will be brought up to stream on the plans for the transition, in the very near future, as soon as the current period of due diligence and negotiations are completed with SVL."
JLC is poised for further growth in 2004.
