China Vanguard says nine-month profit to triple

China Vanguard says it expects to report a 200 percent increase in profit for the nine months to end-March due to strength in its China lottery business.

In a filing with the Hong Kong Stock Exchange, the group said the figure is preliminary and it expects to formally report results on May 14th.

The gains follow the signing of numerous agreements with Sports and Welfare Lottery Administrative Centres in the PRC for the provision of lottery operation related services, the company said.

“These new provinces have begun to bring in revenue for the group during the nine months ended 31 March 2015. The significant increase in revenues is in-line with the management’s expectation as the Group’s strategy to build a nation-wide business in providing lottery operation-related services is gradually taking effect,” it added.

Total sales in China’s lottery industry rose 23.6 percent to RMB 382.38b ($61.6b) in 2014, led by the Sports Lottery which got a boost from the 2014 FIFA World Cup in Brazil.

However, sales dipped in March after a government crackdown on online sales, falling 6.3 percent in the month.