Loto Quebec's productivity problems lowered profits in years past
Loto-Quebec's ability to generate profits has been partially undermined by a productivity problem, according to a study released Monday by HEC Montreal.
The authors of the study state that Loto-Quebec's financial statements show that its ability to generate profits has been weakened by a difficult environment and that is partially due to an inability to improve productivity.
The study finds that the Crown corporation has a net profit in real dollars well below what it was earning in the mid-2000s, and that this is a major shortfall for the Quebec government.
HEC Montreal maintains that it was only in a strategic plan created for 2014-2017 that the Crown corporation reversed the trend with an innovative and competitive entertainment offer coupled with effective management of its resources.
Loto-Quebec then managed to increase its productivity by 15 percent in less than two years.
The director of the study, Robert Gagné, recommends that the Quebec government review its requirements for Loto-Québec if it wishes to ensure the responsible marketing of games of chance while maximizing its revenues.