Spending nearly 3,500 billion VND to pay out prizes, why did Vietlott lottery report the highest profit in many years?

A player receives a prize from Vietlott - Photo: Vietlott

The audited financial report for 2023 of Vietnam Computerized Lottery Company Limited (Vietlott) shows that this enterprise has just experienced a favorable business year.

Specifically, Vietlott recorded revenue of VND 4,967 billion. Although revenue did not increase much (about VND 9 billion), profit after tax still reached VND 242.7 billion, an increase of nearly 17% compared to 2022.

Looking at the report of this computerized lottery company, it can be seen that Vietlott's gross profit last year even decreased by more than 5%, reaching only 268.7 billion VND.

However, thanks to a sharp increase in financial revenue and other income, Vietlott's net profit is still the highest in the past 5 years.

	Revenue	Profit after tax
2016	1222	86
2017	3069	216
2018	2988	271
2019	2968	152.9
2020	3932	168.4
2021	4063	159.8
2022	4958.7	208
2023	4967.7	242.7

Vietlott's business results from the time of financial statement announcement - Data: Audited financial statements

Specifically, last year, Vietlott recorded more than VND 4,699 billion for cost of goods sold, a slight increase compared to 2022 and accounting for more than 94% of total revenue.

In terms of cost structure, Vietlott has spent VND 3,438 billion on prize payment expenses and prize payment provisions for customers, approximately the same as last year.

In addition, Vietlott also had to spend 502.7 billion VND to pay commissions to lottery agents who choose computerized numbers.

Vietlott's net profit in 2023 was almost "flat" compared to the previous year. However, in the "other income" section, Vietlott recorded more than 53.3 billion VND, more than 6 times higher than the same period.

The report notes show that this is revenue from "fines for breach of BCC contracts". BCC contract is a term referring to a type of business cooperation contract.

In addition to the sudden increase in other income, Vietlott also recorded VND64.25 billion in interest from bank deposits, an increase of 37%.

Vietlott has more than a thousand billion deposited in the bank to earn interest

According to the financial statement, at the end of 2023, this company had more than VND 1,126 billion deposited in banks at different terms to earn interest.

By the end of 2023, Vietlott's total assets reached more than VND 1,278 billion, without recording any bank loans.

Owner's equity is over 552 billion VND, of which owner's contributed capital is 500 billion VND, and undistributed profit after tax is nearly 53 billion VND.

Source: https://tuoitre.vn/chi-gan-3-500-ti-dong-tra-thuong-vi-dau-xo-so-vietlott-bao-lai-cao-nhat-nhieu-nam-20240627120032773.htm