information on the business activity of szerencsejáték zrt. in...
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Information on the Business Act iv i ty of Szerencsejáték Zrt . in 2010
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
Contents
Introduction of the Chairman-Chief Executive Officer
Primary dataPUBLIC GAMING PER ONE INHABITANT 2007-2010
GAMING REVENUE BY MAIN GAME TYPES 2007-2010
NUMBER OF GAMES BY MAIN GAME TYPES 2007-2010
PRIZES 2007-2010
SHARE OF EACH GAME FROM SALES REVENUES • Shares of games 2010
TREND OF SALES SECTORS • Shares of sectors 2010
EVALUATION OF THE PERFORMANCE OF SALES REGIONS • Shares of regions 2010
NETWORK AND TECHNOLOGICAL DEVELOPMENT • Number of points of sale 2007-2010
SPONSORSHIP, PATRONAGE 2007-2010
EMPLOYMENT • Average statistical number of employees 2007-2010
STATE BUDGET CONTRIBUTION • Contribution to public social expenditure 2007-2010
CHANGE OF WEALTH • Balance sheet/Assets 2007-2010 • Balance sheet/Liabilities 2007-2010
Profit and loss statement
Balance sheet
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
In t roductory words o f Dr. Ká lmán Szentpétery, CEO & Cha irman o f the Board o f Direc tors
Dr. Kálmán Szentpétery CEO & Chairman of the
Board of Directors
Twenty years; this is the anniversary Sze-
ren csejáték Zrt. closes year 2010 with, as it
was exactly at the turning point of years
1990–91, namely on 1 January 1991 when
Szerencsejáték Részvénytársaság was es-
tablished, by having taken over the operation
of gambling from Országos Takarékpénztár.
The fact that it was a good decision in-
deed is justified by the spectacular develop-
ment during which Szerencsejáték Zrt. has
become a European level game operator
from a department of OTP Bank. Although at
the very beginning only Ötöslottó and Totó
represented the offer of the company, now-
adays there are dozens of products our cus-
tomers can select from. While the reputa-
tion and acknowledgement of Ötöslottó, also
known as our flagship product, has not de-
creased at all – albeit it is almost 60 years
old –, there have been several new lottery
games, sports betting, or instant tickets
similar to the ones so beloved in other parts
of the world developed by us or adapted
from elsewhere.
There are only few countries that have
such a diverse offer, trying to meet such a
wide range of demands. During these twen-
ty years the Company has had a turnover of
more than HUF 1600 billion; this is the
equivalent of its revenues. The amount of
net paid prizes is almost HUF 700 billion.
The budgetary payments are somewhat
lower, but in the course of the past two de-
cades they amounted to HUF 663 billion. The
last year is to be considered as highly im-
portant, because the company managed to
reach its highest gaming revenues so far.
This amount was exactly HUF 14.6 billion
more than a year before, and it came to a
total of HUF 168.5 billion. The players were
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
paid altogether HUF 81.3 billion, that is a re-
cord as well. The profit before taxation
reached HUF 7.1 billion, that is HUF 1.4 billion
more than in 2009. We paid HUF 61.6 billion
as budgetary contribution; the majority of
this amount was represented by the gaming
tax and the personal income tax on prizes.
From the lottery type games it was the
Ötöslottó and the Skandináv lottó where the
revenues exceeded our expectations in 2010.
The revenues of Ötöslottó, Hatoslottó and
Skandináv lottó represented 51.7% of the to-
tal revenues coming from gaming. As far as
the sports betting is concerned, we also
managed to close a good year; the revenues
of our Tippmix pool amounting to HUF 36.1
billion also exceeded our plans. Our goal is
to strengthen this segment further, so that
we could be able to provide such services
during the Olympic Games next year that are
adjusted to the needs of our customers even
more properly.
We pay distinguished attention to meet the
requirements of responsible organization
without any compromise. We do so on the
one hand because of moral issues, but also
because of our conviction that the respect for
social values and the primary importance of
responsibility are more profitable in the long
run than trying to reach a profit at any price.
We are really proud of the fact that our com-
pany joined the European spearhead of re-
sponsible game operators in the middle of
last year as the first company from CEE
countries, and Szerencsejáték Zrt. could be-
gin the new year among the world leaders.
As it acquired the highest ranking qualifica-
tion of the World Lottery Association for re-
sponsible game operators. We are currently
working to make the program elements part
of the daily operations.
CEO & Chairman of the Board of Directors
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
Public gaming per one inhabitant 2007-2010
200820092010
2007
14 325 15 733
HUF/capita
Gaming/capita
15 346 16 873
20 000
15 000
10 000
5 000
0
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
Gaming revenue by main game types 2007-2010
16 13
1
101 3
06
14 5
19
12 2
41
23 0
95
106
255
16 4
84
12 2
00
28 8
02
96 3
94
16 5
99
12 14
4
39 3
57
99 6
98
17 75
5
11 6
80
million HUF
Sports betting(Toto, Goal Toto, Tippmix, Tippmax)
Draw-based number games (5/90 Lotto, 6/45 Lotto, Scandinavian Lotto, Joker, Keno,
Luxor, Tango)
Scratch cards Quick games(Putto, Bingo)
120 000
100 000
80 000
60 000
40 000
20 000
0
200820092010
2007
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
Number of games by main game types 2007-2010
198
595
72 82256
559
74 81315
507
64 79418
480
69 60
million pcs
Sports betting (Toto, Goal Toto, Tippmix, Tippmax)
Draw-based number games (5/90 Lotto, 6/45 Lotto, Scandinavian Lotto, Joker, Keno,
Luxor, Tango)
Scratch cards Quick games(Putto, Bingo)
600
500
400
300
200
100
0
200820092010
2007
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
Prizes 2007-2010
200820092010
2007
79 295 86 083
million HUF
Gross prizes
85 683 95 503
100 000
80 000
60 000
40 000
20 000
0
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
Share of each game from sales revenuesShares of games 2010
Tippmix21,44%
Tippmax0,45%
5/90 Lotto29,34%6/45 Lotto
12,85%
Scandinavian Lotto9,50%
Joker2,68%
Keno2,64%
Luxor2,17%
Scratch cards10,53%
Putto6,93%
Toto1,41% Goal
Toto0,06%
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
Trend of sales sectorsShares of sectors 2010
Lottery shops23,6%
Post offices 14,5%
LAPKER (newspaper trading) 4,2%
Sole traders55,0%
Charity sales0,4%
Interactive channels*2,3%
*telephone, internet, SMS
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
Evaluation of the performance of sales regionsShares of regions 2010
Pécs14,9%
Szeged15,9%
Miskolc19,8%
FÉR - Budapest Sales Region
24,2%
North-Transdanubia22,9%
Headquarters2,3%
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
Network and technological developmentNumber of points of sale 2007-2010
200820092010
2007
pcs
Complete game portfolio Only scratch cards
5 000
4 000
3 000
2 000
1 000
0
4 396 4 390 4 371 4 445 2 633 2 313 2 393 2 051
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
Sponsorship, patronage
200820092010
2007
million HUF
Indirect based on Sports Act Direct**sports, culture, health care
Indirect, National Cultural Fund**
* *90% of game tax of 5/90 Lotto
5 000
4 000
3 000
2 000
1 000
0 4 119 4 376 4 183 4 549 822 939 620 10 673739
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
EmploymentAverage statistical number of employees 2007-2010
200820092010
2007
1 347 1 296
persons
1 290 1 284
1 500
1 200
900
600
300
0
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
State budget contributionContribution to public social expenditure 2007-2010
200820092010
2007
million HUF
Direct taxes and fees*
*Game tax, pers. income tax on winnings, authority licensing charges, trading tax,
innovation contribution
Taxes charged to profit, dividend**
**Corporate income tax and special tax, dividend
Other not highlighted taxes, contributions
60 000
50 000
40 000
30 000
20 000
10 000
048 605 50 566 45 603 47 264 8 392 7 604 7 4836 5302 180 6 891 7 631 7 835
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
Change of wealth Balance sheet/Assets 2007-2010
200820092010
2007
Long-term assets Current assets Prepayments
million HUF
20 000
15 000
10 000
5 000
0
13 724 13 998 13 361 12 672 17 514 19 328 16 875 19 064
1 237 1 584 2 109 1 390
In format ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
16 9
61
81 1 435
16 9
61
108
16 2
76
13 9
98
1 555
15 0
58
128
15 5
87
1 572
15 6
47
759
15 0
17
1 703
Capital net worth Provisions Liabilities Accruals
20 000
15 000
10 000
5 000
0
million HUF
Change of wealth Balance sheet/Liabilities 2007-2010
200820092010
2007
PROFIT AND LOSS STATEMENT
Informat ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
2007. 2008. 2009. 2010.million HUF
Net revenue from domestic sales 144 935 158 605 154 356 169 019From this: revenue from gaming 144 197 158 034 153 939 168 490Net sales revenue 144 935 158 605 154 356 169 019Change in stocks of own production Capitalized value of assets of own production Value of capitalized own performance Other revenues 504 259 166 183From this: reversed loss in value 11 1Material costs 1 088 1 217 1 165 1 393Value of services taken 21 006 21 004 21 349 20 150Value of other services 446 382 363 383Historical value of goods sold 1Value of services sold (mediated) 117 112 144 167Material-type expenses 22 657 22 715 23 021 22 094Wage costs 4 810 5 133 5 087 5 623Other personnel-related disbursements 1 149 1 142 1 319 1 326Contributions on wages 1 804 1 917 1 883 1 769Personnel-related expenses 7 763 8 192 8 289 8 718Depreciation 2 250 2 440 2 306 2 333Other expenses 111 512 119 668 117 253 129 299From this: loss in value 365 151 79 111
value of gross prizes accounted as expenses 79 295 86 083 85 683 95 503REVENUE FROM OPERATIONAL (BUSINESS) ACTIVITY 1 257 5 849 3 653 6 758Received (due) dividend and share in business 83 88 798 From this: received from related business 80 88 798 Exchange gain from selling shares in business From this: received from related business Interests and exchange gain from long-term financial assets 1 From this: received from related business 1 Other interests and interest-type revenues received (due) 958 1 404 1 530 1 071From this: received from related business Other revenues from financial transactions 2 5 137 1Revenues from financial transactions 1 044 1 497 2 465 1 072Exchange loss on long-term financial assets From this: given to related business Interests and interest-type expenses payable From this: given to related business Value of loss on shares in business, securities, and bank deposits 86 17 Other expenses on financial transactions 4 5 8 4Expenses of financial transactions 4 91 25 4PROCEEDS ON FINANCIAL TRANSACTIONS 1 040 1 406 2 440 1 068USUAL BUSINESS PROCEEDS 2 297 7 255 6 093 7 826Extraordinary revenues 576 88 87 Extraordinary expenses 549 452 453 707EXTRAORDINARY PROCEEDS 27 -364 -366 -707PRE-TAX PROFIT 2 324 6 891 5 727 7 119Taxes payable 180 966 631 1 530AFTER-TAX PROFIT 2 144 5 925 5 096 5 589Use of profit reserves for dividends and share in business 1 904 Approved dividend and share in business 2 000 5 925 7 000 5 000RETAINED PROFIT OF THE YEAR 144 0 0 589
BALANCE SHEET / ASSETS
Informat ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
2007. 2008. 2009. 2010.million HUF
LONG-TERM ASSETS 13 724 13 988 13 361 12 672Intangible assets 1 975 1 875 1 579 1 434Capitalized value of foundation and reorganization Capitalized value of experimental development Rights representing assets 1 722 1 696 1 453 1 363Intellectual products 253 179 126 71Advances paid on intangible assets Value adjustment of intangible assets Tangible assets 9 759 10 196 10 082 9 544Real property and related rights representing assets 6 370 6 625 6 684 6 523Technical equipment, machinery and vehicles 1 892 1 901 1 838 2 239Other equipment, outfit and vehicles 1 269 1 058 971 734Investments, reconstructions 215 211 573 37Advances paid on investments 13 401 16 11Value adjustment of tangible assets Long-term financial assets 1 990 1 917 1 700 1 694Long-term share in related business 1 942 1 857 1 639 1 639Long-term lending to related business Other long-term share in business Long-term lending to business in other profit sharing relation Other long-term lending 48 60 61 55Securities representing long-term credit relation Value adjustment of long-term financial assets Liabilities 17 514 19 328 16 875 19 064Stocks 539 611 782 625Materials 460 506 710 535Goods 70 77 72 77Advances given on stocks 9 28 13Receivables 7 898 5 331 5 253 10 951Receivables from deliveries and services (customers) 1 846 1 622 638 533Receivables from related business 13 87 269 Receivables from businesses in other profit sharing relation Receivables from bills Other receivables 6 039 3 622 4 346 10 418Securities 7 873 11 682 10 178 7 111Share in related business 200 Other business participations Own shares and participations Securities for negotiation representing credit relation 7 873 11 682 9 978 7 111Financial assets total 1 204 1 704 662 377Cash in hand, cheques 239 432 251 239Bank deposits 965 1 272 411 138ACCRUED ASSETS & DEFERRED EXPENSES 1 237 1 584 2 109 1 390Accrued revenues 326 922 1 387 887Deferred costs and expenses 911 662 722 503Postponed expenses ASSETS TOTAL 32 475 34 900 32 345 33 126
BALANCE SHEET / LIABILITIES
Informat ion on the Bus iness Act iv i ty o f Szerencse já ték Zr t . in 2010
2007. 2008. 2009. 2010.million HUF
Capital net worth 16 961 16 961 15 058 15 647Share capital 3 000 3 000 3 000 3 000
a) Repurchased owner’s share at face value Capital reserve Profit reserve 13 817 13 961 12 058 12 058Earmarked reserve Evaluation reserve Retained profit of the year 144 589PROVISIONS 81 108 128 759Provisions for future liabilities 81 108 128 759Provisions for future costs Other provisions LIABILITIES 13 998 16 276 15 587 15 017Deferred liabilities Long-term liabilities Short-term liabilities 13 998 16 276 15 587 15 017Short-term loans received - from this: convertible bonds Short-term credits Advances from customers 55 89 114 181Payables from goods and services received (suppliers) 927 1 250 1 265 1 629Bill debts Short-term payables to related business 28 9 16 9Short-term payables to businesses in other profit sharing relation Other short-term payables 12 988 14 928 14 192 13 198ACCRUED EXPENSES AND OTHER LIABILITIES 1 435 1 555 1 572 1 703Accrued revenues 750 957 1 079 1 305Accrued costs and expenses 511 512 493 398Postponed revenues 174 86 LIABILITIES TOTAL 32 475 34 900 32 345 33 126