Loto-Quebec has the necessary tools to protect itself against potential Russian retaliation against Canada in the form of cyberattacks, said president and CEO Jean-Francois Bergeron, while experts warn of this threat to Canadian companies and organizations.

Bergeron explained that for Loto-Quebec, being the target of cybercriminals is not new, as the company unveiled its quarterly results.

"We have hundreds of attacks every day. We have teams that filter that," he said. "That's not new. There's no overheating because of Russia. We are always very vigilant, on the lookout for anything that happens on our networks."

Hydro-Quebec, another state-owned company that would be an even more strategic target for a Russian attack, has decided to increase the number of resources dedicated to cybersecurity, specifically to counter this threat.

For its part, Bergeron said Loto-Quebec has the necessary tools to protect itself against this type of threat.

"It's no more worrisome, we're already prepared," he said.

Loto-Quebec also decided to give "symbolic" support to Ukraine by announcing on Monday that it would no longer take sports bets on Russian sports league matches. The decision does not affect players of Russian origin who play for another team. It's not a big part of the volume, but it's still 5 per cent of the total volume of sports bets. 

Since Loto-Quebec's activities take place exclusively on Quebec territory, the company does not have the opportunity to sanction Russia directly, as the Société des alcools du Québec (SAQ) did when it removed Russian products from its shelves.

However, Loto-Quebec wishes to show its solidarity with the Ukrainian people. It is in this spirit that the lights that illuminate the Montreal Casino are projecting the blue and yellow colours of the Ukrainian flag.

CLOSE TO PRE-PANDEMIC LEVELS

The third-quarter financial results, unveiled Tuesday, were close to their pre-pandemic level, just before the casinos were closed due to the Omicron wave.

That picture gives Bergeron the confidence to view the recovery with cautious optimism.

The Crown corporation generated a consolidated net income of $324.7 million in the third quarter of its 2021-2022 fiscal year (Sept. 28 to Dec. 27, 2021). This is an increase of 120.9 per cent, or $177.7 million, over the same period last year. Revenues reached $619.9 million, an increase of 70.1 per cent, or $255.5 million.

"This brings earnings to 94 per cent of their pre-pandemic level (fiscal 2019-2020), while revenues are at 90 per cent. Despite COVID-19, despite limitations, despite seven fewer days, we have managed to achieve results very similar to those before COVID," said Bergeron. "That's encouraging."

Despite lower sales, the company's expenses are a smaller share of revenue than before the pandemic. The total expense ratio is 27.7 per cent for the first nine months of the year, compared to 30.6 per cent for the comparable period before the pandemic.

"That means we've done a very good job," Bergeron said.

The company has made decisions that have resulted in "significant savings. Some of the savings are going to be more time-based, such as expenses that were deferred, but the majority are going to be recurring savings.

"We're very pleased. We're going to have fewer expenses for the next few years," said Bergeron.

THIRD REOPENING

The third-quarter results include just seven days of the third wave of gaming and casino closures, which began on Dec. 20. These establishments reopened on Feb. 28, with the exception of the Mont-Tremblant casino, which did so on March 3. Nearly 20 per cent of the 3,800 employees are still to be recalled. However, some may choose not to return.

Loto-Quebec has learned from previous shutdown cycles where it had to deal with new measures, such as restrictions on the number of people in a closed space or the adoption of the vaccination passport.

"It is adapting much more quickly to the resumption of activities," said Bergeron. "This opening, we were able to be ready in 48 hours. Whereas the previous one was 20 days and the one before that was a month and a half."

-- This report by The Canadian Press was first published in French on March 8, 2022.