DLB 2018 profits jump as revenue overshadows lottery sellers strike
The Development Lotteries Board (DLB) posted an upturn in the turnover and profits during the first half of 2018 despite a fall in sales revenue in 2017 due to the strike of lottery agents and sellers, Chairman of the Board S.A.P. Suriyapperuma disclosed.
S.A.P. Suriyapperuma
Following the strike action by the lottery agents and sellers, lottery stalls and shops countrywide were closed down and no lottery tickets were sold for several weeks in January 2017 following the Rs.10 increase in the price of lottery ticket.
The Government has reverted to the earlier price of Rs. 20 from Rs. 30 after 18 days of continuous strike last year, heeding to the demand made by the All Island Lottery Agents Association.
A successful sales performance after the end of the trade union action saw a 28.4 per cent growth in profit before tax of Rs. 1,311 million in the first half of 2018 over the same period in 2017 in spite of challenging business environment, Mr. Suriyapperuma said.
The profit before tax during the first six months of 2017 was Rs.1021 million and the profit margin stood at 15.9 per cent compared to profit margin of 16.3 per cent during the first six months of 2018.
This was an increase of 2.1 per cent compared to the 2017 profit margin.
The Board posted a profit after tax amounting to Rs.1209 million during the first half of 2018 and the reason for the decline in turnover in 2017 was the trade union action carried out by lottery sales agents and sellers, he added.
The DLB has achieved turnover of Rs. 7362 million for the year 2016, while the turnover in 2018 was Rs. 8005 million. If the year 2016 is taken as the base year, the turnover in 2018 indicated an 8.73 per cent growth, he disclosed.
The total turnover has recorded an increase of 25 per cent to Rs. 8005 million in the first six months of 2018, compared to Rs. 6383 million turnover during the same period last year.
The Development Lotteries Board offers 11 lottery tickets to the local market along with 10 lotteries draw tickets and the oldest instant lottery of Sri Lanka, the Development instant scratch lottery ticket.
The main aim of the DLB is recognised as the foremost lottery issuing organisation in the country that works towards developing and enriching the Sri Lankan economy.
It is also an important contributor to the President’s Fund, which provides a range of welfare measures for the people with financial difficulties in obtaining medical facilities.
It also provides financial assistance for the treatment of serious non communicable diseases such as heart ailments, kidney transplant, he said.
Some 50 per cent of the contributions to the fund are credited to the Mahapola Trust Fund established in 1981, with the objective of providing financial assistance for the studies of students those who engage in higher education.
Mahapola Trust Fund has awarded 276,674 scholarships for university students since 1983 up to 2017.
In addition to the direct contribution to the President’s Fund, the DLB is a significant contributor to the government’s tax revenue. The Board has paid Rs. 579 million as taxes to the government for the period January – June 2018.