Presentation to Joint
Committee on Finance,
Public Expenditure & Reform
Donal Connell, Chairman,
An Post National Lottery
Company
December 2011
Donal Connell
• Appointed Chief Executive of An Post and
Chairman of the An Post National Lottery
Company in 2006
• Bachelor of Engineering ( U.C.D.), Chartered
Engineer, Fellow of the Institution of Engineers
of Ireland
• Held senior management positions in major
multinational companies 3COM Corporation,
Maxtor Corporation, Unitrode Corporation
December 2011
Strictly Confidential - Limited Distribution
Donal Connell
• Vice President of 3COM Corporation , responsible
for the company’s manufacturing, distribution
and retail businesses in the Europe, Middle
East and Africa region. Similar role with Maxtor
Corporation
• Track record of consistent achievement at the
An Post National Lottery Company and An Post
itself
December 2011
Strictly Confidential - Limited Distribution
3
General Overview
Company Structure
• An Post National Lottery Company (NLC) is a
subsidiary of An Post.
• 80% of shares owned by An Post, 20% owned by
Minister for Public Expenditure and Reform.
• NLC was established in 1986 under the terms of
the National Lottery Act (1986).
• Commenced trading 23rd March 1987.
December 2011
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National Lottery Licence
• Extension of 18 months up to 30th June 2013
recently announced by DPER
• Key Licence Conditions:
– All NLC games require approval by the
Minister for PER
– Operating Cost % and Prize %, number of
Agents are controlled
– Management fee paid to An Post
– Minister owns the assets of the business
including all intellectual property
December 2011
Strictly Confidential - Limited Distribution
6
The Board
• The Board consists of 7 Directors appointed by
the Minister for Public Expenditure and Reform.
• 3 Directors and chair nominated by An Post.
• 3 Directors nominated by the Minister for Public
Expenditure and Reform.
December 2011
Strictly Confidential - Limited Distribution
Company Overview
• 2.2 million adults (63%) are National Lottery
players.
• 1.5 million adults (42%) participate each week.
• The National Lottery has 103 employees.
• 3,800 retail sales agents
• €420m (55%) prizes
• €244m (31%) good causes
• €48m (6%) Agent commission
• €60m (8%) other operating costs
December 2011
Strictly Confidential - Limited Distribution
Big numbers….
Good Causes
Winners
Promoting Beneficiary Funding
• National Lottery funding is distributed by
Government to the following areas:
-
Sport & Recreation
-
Health & Welfare
-
Arts & Culture
-
Irish Language
• Awareness of beneficiary funding is an important
motivating factor for people to play our games.
December 2011
Strictly Confidential - Limited Distribution
Irish Guide Dogs
Everton Football Club, Cork
Irish Kidney Association
Irish Kidney Association
December 2011
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Wexford Festival Opera
Raidió Rí-Rá
Carlow
Gymnastics
Club
Limerick Youth Service
December 2011
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Financials
Games…percent of sales
• Lotto ‘Family’
56%
• Scratchcards / Internet Instant Win
20%
• EuroMillions Games
17%
• Monday Million & Monday Million Plus
3%
• Other Games
4%
December 2011
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2010….figures
•
•
•
•
•
Sales €772m
Prizes €420m
Agent commission €48m
Other operating costs €60m
Contribution to Good Causes €244m
Total Return to Community €718m
As % of Sales 93.0%
December 2011
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International
Comparisons
Per Capita Sales
• Our flagship Lotto is ranked 5th, within Europe,
ahead of the bigger European lotteries such as
France and UK
• Lotto is also ranked 8th in the world with per
capita sales of €129 in 2010.
• Compared to Camelot in the UK, NLC sales per
capita are consistently 47% and more ahead.
December 2011
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Funds for Good Causes
• NLC ranks highly when compared to our
European counterparts with per capita
contribution of €54 in 2010.
• NLC ranked 8th of 41 European Lotteries,
considerably higher than the EU average of €44
and the European average of €29.
December 2011
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Sales per employee
• One of the key indicators of efficiencies is sales
per employee.
• For 2010, NLC generated sales of €7.5m per
employee which compares favourably with our
European counterparts.
• NLC ranked first on the sales per employee
metric when compared to lotteries in European
countries of similar population to Ireland (i.e. in
the 3 to 6 million range)
December 2011
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Future Opportunities
NLC Product Roadmap 2003 - 2010
2003
December 2011
2004
2005
2006
2007
2008
2009
2010
National Lottery Play Online
• Currently offers Lotto,
EuroMillions and a
range of Instant Win
Games
Lotto Online Playslip
National Lottery Mobile
• Over 120,000 downloads of iPhone App since launch in 2010
Homepage
Prizes & Results
Number Checker
Limited Distribution – Company Confidential
Number
Generator
Internet & Mobile Phone Games
• Key components for future growth.
• Built technology:
• Provide Lotto, EuroMillions via online/mobile
phone.
• An appropriate selection of instant games.
• Focus on attracting new generation of adult players.
• Working closely with the Department in the
development of this channel consistent with our
Responsible Gaming Policy
We plan to broaden the selection of games on offer as well
as providing improved convenience for our customers
December 2011
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World Game
• As part of EuroMillions group we are currently working to
develop a new worldwide lottery game concept
• World Game to launch in 2014
• This exciting project will deliver a compelling game with a
prize structure that no single lottery could deliver on their own
or as part of existing Multi-jurisdictional communities.
• And it will generate incremental revenue for Good Causes
• Lotteries from Europe, North America, Australia are
collaborating in planning this unifying concept
December 2011
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Social Media
• Facebook page to
launch in January
2012.
• Social media
strategy will
strengthen our
interaction with
players using these
new media channels.
14th December 2011
Strictly Confidential - Limited Distribution
Digital Signage
• Utilising our existing nationwide broadband network to our
3,800 agents we have commenced a programme to install
realtime Digital messaging.
• By January 2012 1,000 of our top agents will have Screens
featuring jackpot amounts, latest game promotions, good
cause information and responsible gaming messages.
14th December 2011
Strictly Confidential - Limited Distribution
Summary
Summary
• Money for Good Causes 1987-2010…€3.7bn
• More than a €1billion in the last 4 years
• Track record of innovation and efficiency
• Successful strategy formulation and
implementation
December 2011
Strictly Confidential - Limited Distribution