Restructuring costs of €3.2m contributed to the operator of the National Lottery last year recording an operating loss of €7.7m.
That is according to new accounts by Premier Lotteries Ireland DAC (PLI) which show that revenues from ticket sales slumped by €54.7m or 6% from €884.1m to €829.4m.
The accounts show that the amount paid out to good causes also declined by €31.6m or 12% from €259.5m to €227.9m.
The amount paid out in prize money last year declined by €6.1m from €484.9m to €478.8m.
The amount paid out in prize money last year was 57.73% of sales in 2023 compared to 54.84% of sales in 2022.
In their report, the directors state that "actual prizes won in any year are a function of many variables including sale levels, sales mix, prize structures and the roll sequence pattern of draws".
Under the terms of the lottery licence, 65% of sales less prizes income is paid to fund good causes.
The operating loss of €7.7m last year followed an operating profit of €8.2m in 2022 - a negative swing of €15.9m.
Finance costs of €34.7m resulted in Premier Lotteries Ireland DAC recording a pre-tax loss of €42.4m - double the pre-tax loss of €21m recorded in 2022.
The directors state that sales of draw based games last year were €531.5m compared to €585.4m in 2022 and the sales of scratch card/interactive instant win games were €297.7m compared to €298.7m in 2022.
The directors state that the PLI retail network at the end of December 2023 stood at 5,195 agents compared to 5,225 at the end of 2022.
They state that sales through digital channels totalled €132.2m and represented 15.9% of all sales compared to online sales of €141m in 2022 which represented 16% of sales.
The company's profits were hit during the year by €3.9m in non-trading costs that related to restructuring costs of €3.2m and a €700,000 impairment loss on a tangible asset.
The pre-tax loss last year takes account of combined non-cash amortisation and depreciation costs of €33.3m.
The company last year received a capital injection of €501.4m and this allowed it to repay a €100m loan to its immediate parent, Premier Lotteries Ireland Midco.
The lottery firm also paid out a dividend of €100m and subsequent to year end, the directors recommended a further dividend of €20m.
On the company's future developments, the directors state that PLI is focused on growing sales, offering players a wide choice of games and maximising the funds raised for good causes.
Numbers employed by PLI last year decreased from 214 to 207 as staff costs declined from €19.1m to €18.7m.
Directors' pay last year totalled €1.1m made up of emoluments of €1m and pension contributions of €100,000.
In July 2023, it was announced that PLI was sold to French gaming company and lottery operator La Française des Jeux (FDJ) in a deal worth €350m that was completed on November 3 last.
PLI, which holds the rights to the lotto until 2034, was majority owned (80%) by Ontario Teachers’ Pension Plan (OTPP) with An Post retaining a 20% stake in the business since 2014.
On average, 1.2m people per week played National Lottery games in 2023.
These players helped support over 4,500 organisations and groups in towns and villages across Ireland, with approximately 27 cent in every €1 spent on National Lottery games going directly to Good Causes in 2023.
Commission paid to National Lottery retailers amounted to €43.8m.
CEO Premier Lotteries Ireland, Cian Murphy said: "Almost a quarter of a billion euro was raised for the Good Causes Fund in 2023, and we are delighted with the continued positive impact those resources have on thousands of Good Causes throughout the country.
"We embrace further change this autumn when we mark a new milestone for the National Lottery with a brand-new home across the Liffey at 1 George's Quay.
He added: "This reaffirms our commitment to a vibrant Dublin city centre and the building’s platinum energy rating will play a major role in helping to achieve our ESG objectives."
In total, 39 National Lottery players became millionaires in 2023, compared to 34 in 2022.
The biggest winner of the year was a Limerick Lotto player who started the year by winning €11.1m in the 4th January draw.
Reporting by Gordon Deegan
