Benin’s National Lottery reports 83% profit surge in 2024

In 2024, the Loterie Nationale du Bénin (LNB S.A.) saw an 83% rise in net profit, increasing from 3.91 billion CFA francs in 2023 to 7.16 billion CFA francs. The boost was mainly attributed to strong growth in online games, especially LOTO 5/90 and sports betting, which drove total revenue up by 9% to 102.5 billion CFA francs.

Online gaming revenue nearly doubled, reaching 57.1 billion CFA francs and accounting for over half of total sales. Management reportedly viewed this shift as a sign of successful digital transformation, especially as it came amid rising competition.

Despite the profit increase, key operational indicators declined. Gross operating surplus and operating income each fell by 13%, while value added dropped by 7%. The company also faced higher costs, with personnel expenses and overall purchases increasing. However, some expenses such as external services and miscellaneous charges declined.

Analysts noted that the profit surge was largely driven by exceptional non-operating income of 3.1 billion CFA francs, compared to just 20 million the previous year. While this reassured investors, it raised concerns about sustainability.

Since joining the BRVM stock exchange in late 2024, LNB has drawn closer financial scrutiny. Although the company maintains a solid balance sheet with an autonomy ratio above 80% and operational cash flow of 7.86 billion CFA francs, observers pointed to the pressure on margins as a challenge moving forward.