Capital efficiency of lottery companies

Information agency Credinform presents ranking of the largest Russian gambling and lottery companies. Enterprises with the largest volume of annual revenue (TOP-10) were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2016-2018). Then they were ranked by decrease in return on equity ratio (Table 1). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Return on equity (%) – characterises productivity of equity of an enterprise and shows the amount of net profit per rouble of equity.

The higher the indicator is, the more effectively the company uses equity invested in the authorized fund. However, it shoud be taken into account that too high indicators exceeding average values in the economy or in the industry by several times, can demonstrate insignificant equity amount with relatively high amount of net profit.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of indicators and financial ratios.

Table 1. Net profit, revenue, return on equity ratio, solvency index Globas of the largest Russian gambling and lottery companies (TOP-10)

Name, INN, region	Revenue, billion RUB		Net profit (loss), billion RUB		Return on equity ratio, %		Solvency index Globas
	2017	2018	2017	2018	2017	2018
1	2	3	4	5	6	7	8
JSC STATE SPORT LOTTERIES INN 7728795958 Moscow	34648,6	46078,1	374,6	118,0	1248563,33	393423,33	285 Medium
JSC TK CENTER INN 7715918994 Moscow	16645,2	18729,0	512,3	7,7	1707650,00	25723,33	262 Medium
LLC F.O.N. INN 9715010229 Moscow	9686,3	24091,3	1674,1	9271,2	279,01	1545,19	155 Superior
LLC NHU MANAGEMENT COMPANY INN 7714707736 Moscow	2458,8	1088,84	250,8	717,0	208,84	597,01	177 Superior
LLC FORTUNA INN 6164205110 Rostov region	18078,3	17315,3	48,5	458,4	45,70	432,29	148 Superior
LLC FIRMA STOM INN 7705005321 Moscow	8557,7	20197,4	969,4	380,6	841,62	330,42	158 Superior
LLC PMBK INN 7729607406 Moscow	11871,4	36115,7	20,2	620,2	7,33	225,05	190 High
LLC LEON INN 7707760834 Moscow	664,3	2304,5	0,1	168,3	0,04	84,13	211 Strong
LLC G1 Entertainment INN 2502041903 Maritime territory	3522,5	3734,4	1283,9	755,8	107,82	63,47	236 Strong
SUNTORIN COMPANY LIMITED INN 4703069532 Saint Petersburg	10833,1	12191,8	-78,4	252,2	-9,60	30,89	160 Superior
Average value for TOP-10 companies	11696,6	19164,1	505,5	1274,9	295769,41	42245,51
Average industrial value	374,2	632,8	10,7	40,0	17,13	61,34

growth of indicator to the previous period, decrease of indicator to the previous period

Average value of the return on equity ratio of the TOP-10 group is higher than average industrial value. Six companies have improved their results in 2018.

Picture 1. Return on equity ratio and revenue of the largest Russian gambling and lottery companies (TOP-10)

Over a ten-year period average industrial values of the return on equity ratio had increasing tendency. (Picture 2).

Picture 2. Change in the average industrial values of the return on equity ratio of Russian gambling and lottery companies in 2009 – 2018