Analysis of Financial Performance
|
(In $000s) |
2020-21 |
2021-22 (excluding iGO)1 |
Increase/ (Decrease) |
|---|---|---|---|
|
Revenue |
|
|
|
|
Fees, Licences and Registrations |
$ 22,649 |
$ 29,172 |
$ 6,523 |
|
Recoveries – Gaming Sector |
13,446 |
19,735 |
6,289 |
|
Other Revenue |
192 |
82 |
(110) |
|
TOTAL Program Revenue |
36,287 |
48,989 |
12,702 |
|
Expenditures |
|
|
|
|
Salaries and Wages |
61,408 |
63,713 |
2,305 |
|
Employee Benefits |
13,910 |
14,449 |
539 |
|
Other Direct Operating Expenditures (ODOE) |
|
|
|
|
Transportation and Communications |
925 |
938 |
13 |
|
Services |
11,927 |
13,908 |
1,981 |
|
Supplies and Equipment |
433 |
693 |
260 |
|
Amortization of Tangible Capital Assets |
1,631 |
1,771 |
140 |
|
Bad Debts |
- |
7 |
7 |
|
TOTAL Program Expenditures |
90,234 |
95,479 |
5,245 |
|
Annual Deficit from Operations = Contribution by the Province |
53,947 |
46,490 |
(7,457) |
|
Acquisition of Tangible Capital Assets |
1,121 |
2,477 |
1,356 |
Note:
1. iGaming Ontario (iGO): The figures reported in the above table exclude $7.3M in expenditures (and the associated $7.3M in recoveries) that the AGCO incurred on behalf of iGO from July 6, 2021 (date of iGO’s legal establishment) to March 31, 2022.
Fees, Licences and Registrations Revenue in 2021-22 increase of $6.5M is due to higher number of Cannabis applicants, and higher Gaming, Liquor and Horse Racing revenues since extensions were granted in FY2020-21.
$6.3M increase in Recoveries – Gaming Sector is attributed to no recoveries from casinos and cGaming line of business for FY20-21 as a result of COVID-19 closures.
Overall increase in Salaries and Wages and Employee Benefits Expenditures is mainly due to new staff hiring to regulate the igaming open market, as well as an increase in the cost of employee benefits. Increase in Services is due to additional one-time contracts and costs associated with changes in operations. Increase in Amortization of Tangible Capital Assets reflects the full year cost of Regulatory Assurance Solution (RAS), including iAGCO, after its final phase was completed in October 2020.
Acquisition of Tangible Capital Assets increase is due to iAGCO enhancements to support the igaming line of business, liquor reform, and other operational changes.
iGaming Ontario (iGO) Operating Expenditures and Recoveries are excluded from this analysis. iGO S&W, Benefits and ODOE Expenditures incurred by AGCO on iGO’s behalf from July 6, 2021 to March 31, 2022, in a total of $7.3M (excluding HST), are reported as AGCO Operating Expenditures, Recoveries – iGaming Ontario and Due from iGaming Ontario in AGCO’s financial statements.