Szerencsejáték Zrt. is paying a total of HUF 52 billion in dividends into the state budget after the company's HUF 49.1 billion after-tax profit was topped up with a further HUF 3 billion from retained earnings.
A major dividend decision has been made at Szerencsejáték Zrt.: the state-owned company must pay a total of HUF 52 billion into the central budget.
Under the decision, the company is effectively paying out its entire annual after-tax profit, plus a portion of its retained earnings, as a dividend to the state.
Profit Down, but Revenue Up
According to the freshly published annual report, Szerencsejáték Zrt.'s after-tax profit fell slightly compared with the previous year. The company's profit eased from HUF 50.3 billion to HUF 49.1 billion.
Revenue, meanwhile, continued to grow: the company's turnover rose from HUF 1,235 billion to HUF 1,310 billion. Alongside that growth, however, the amount paid out to players in winnings also expanded significantly, from HUF 930 billion to HUF 999 billion.
This shows that although Szerencsejáték Zrt.'s turnover continued to strengthen, the higher payout of winnings caused after-tax profit to dip slightly.
A HUF 52 Billion Dividend Withdrawal
Based on the decision of the minister exercising ownership rights, the company's HUF 49.1 billion annual after-tax profit is being topped up by a further HUF 3 billion from retained earnings. This is how the total HUF 52 billion dividend is reached.
The company must pay the amount into the state budget in two installments. The first HUF 26 billion installment is due by June 30, while the second HUF 26 billion payment must be made by October 31.
The decision also drew attention because the dividend payment was decided just a few days before the elections.
The Company Calls It a Routine Ownership Decision
According to Szerencsejáték Zrt., dividend payment is a customary instrument of state ownership rights. Profitable state-owned companies can contribute to financing the central budget not only through taxes and contributions, but also in the form of dividends.
In the company's view, the purpose of the current payment is to strengthen budget revenues. These state funds can be used to finance public services, social spending and investments, based on government decisions.
The company also emphasized that it has operated profitably and stably for years, and that the dividend payment is the result of management in line with ownership expectations.
Drawing on Retained Earnings Is Not Unprecedented
According to Szerencsejáték Zrt., partially using retained earnings is not an extraordinary step either, provided the company's financial position allows it.
The company says that stable liquidity and sustained profitability create the possibility for the state owner to withdraw a dividend not only from the annual result, but also from part of the retained earnings.
Still a Key Source of State Revenue
Szerencsejáték Zrt. remains one of the most important state-owned companies in Hungary. The company generates significant revenue, while its operations are directly tied to the gambling market, lottery products, sports betting and other state gambling services.
The current HUF 52 billion dividend payment clearly shows that the company's profit continues to play an important role in budget revenues.
Although after-tax profit declined slightly, the company's revenue grew and it continues to enjoy a stable financial footing. Based on the decision, the state is withdrawing a significant sum from the company this year in the form of a dividend.
