Starting March 2013, the Lottery has been run by Adrian Misu Manolache, the “private” manager who was appointed part of the “Private CEOs for state-owned companies” project through which the Romanian government wants to boost the efficiency of state-owned companies’ activities, bringing at their helm managers with experience in corporate governance.
The Lottery ended 2013 with revenue of EUR241 million, up 7% on the year. Still, the company has budgeted 18% lower revenue for 2014, but 21% higher profitability, to almost EUR30 million.
As a matter of fact, 2014 profit nears the one posted in 2009, when the company reported a net figure of EUR35 million.
In 2013, from the Lottery’s profit, EUR19.4 million returned to the state under the form of dividends, after less than EUR5 million in 2012. For 2014, the state is set to cash in EUR26 million from the Lottery.
With around 2,700 employees and a net average salary of RON1,367 in 2013 (15% below the national average of RON1,622 per month), the Lottery has been one of the most profitable state-owned companies.
However, political management has prevented the Lottery, which holds over 50% of the gambling industry, from hitting its full potential, experts say.
With a 13% profitability margin in 2013, up on the year, the Lottery’s figures are weaker than those registered by a private operator of slot machines, Max Bet, which boasted profitability of almost 25% in 2013 amid revenue of EUR49 million.
In the autumn of 2013, the Lottery sealed a partnership with Austria’s Novomatic for the slot machine business, which brings the company around half of annual revenue. The contract was sealed for a 15-year period.
While one of the aims of such partnerships is for the Lottery not to operate additional investments, the company’s 2014 budget includes an investment sum of around EUR13 million, after the company invested just EUR200,000 in 2013.
According to a PwC survey, the gambling industry in 2012 brought receipts of EUR657 million to companies managing slot machines or organizing sports bets or lottery games.
(English version by Catalina Apostoiu)