UK lottery operator Camelot has announced a strategic review following an 8.8% fall in sales in the financial year 2016-2017. In the prior year Camelot achieved record sales of £7.59 billion, so the year on year comparison was always going to be difficult. The chairman of Camelot Jo Taylor said sales were “well short of where we’d like them to be” and that “a further sales decline this year” was to be expected.
Observers of the lottery sector have all just got used to Camelot doing better year on year. Indeed at the height of the UK recession Camelot managed to increase revenue by 3.4%. But the market has now got so much more competitive with new challenger lotteries, the growth of internet casino, and progressive slot games all taking market share.
Add to this a consumer that is starting to feel the pinch and you have a cocktail of unfortunate circumstances that have combined to depress revenue.
Take a look at the five-year revenues of Nestle, Unilever, and Procter & Gamble and you will see zero growth and, in one case, a fall in revenue. Whilst we may think we are out of the worst recession since 1930, the revenue figures of the major companies selling everyday products suggests we are not.