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Camelot's profits fall 40%
 Camelot is bidding with the Post Office for a new lottery licence |
National Lottery operator Camelot's profits have slumped more than 40%.
The group which operates the twice weekly UK lottery, said in the six months to September profits were �20.2m, down from �34m in the same period last year.
The main reason for the fall was an increase in marketing spending and a fall of 7% in ticket sales - down from �2.43bn to �2.26bn.
This also meant that the amount of cash raised for good causes fell to �633.5m from �696.3m.
Total prize money paid out over the period was �1.13bn, down from �1.2bn.
Camelot maintained, however, that the lottery would hit its increased target of �10bn raised for good causes by September 2001.
Poor sales of Instants
The figure is �1bn higher than originally promised at the start of its licence.
It said the fall in ticket sales was expected as part of the natural cycle seen in lotteries overseas, where sales typically dipped in their fifth year.
Sir George Russell, Camelot chairman, said: "As forecast, difficult and changing trading conditions and the lottery's natural lifecycle did impact on lottery sales.
"But, as a result of new game activity, prospects for the full year are promising."
Most of the fall in ticket sales was due to poor sales of Instants scratchcards - down 18%.
Earlier this month the company launched Big Draw 2000, a one-off lottery for the New Year.
Camelot spent an extra �10m in marketing during the period as a result of the game launches - including the Thunderball draw. This extra spending accounted for much of the fall in the firm's profits.
The results come at a time when Camelot is preparing to bid for a new licence to operate the lottery - its current licence expires in September 2001.
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 | 12 Nov 99 | The Company File |
| The rise, fall and rise of Camelot |
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| 30 Sep 99 | The Company File |
| Lottery licence bids open |
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| 06 Aug 99 | The Company File |
| Post Office bids for Lottery |
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