Sazka audited 2005 profit up 18 pct

Revenues grew by more than 10 percent to Kc9.34 billion, he added. Sazka shareholders approved the results at a general meeting today.

Sazka contributed almost Kc1.290 billion to good causes in 2005, up by 16.4 percent year-on-year. Zikmund said the contribution as well as profit were the highest in Sazka's history.

In the first quarter of this year, Sazka made net profit worth Kc583.2 million, a growth of 35.4 percent on the year.

Sazka's results for 2005 were affected by the amended law on value-added tax, which cut its net profit by Kc219 million. The law says lottery and betting firms must pay tax from which they used to be exempt.

The general meeting did not discuss a planned new bond issue to cover debt to shareholders.

The press has said Sazka owes Kc250 million to Czech sports associations, to which it must pay regular contributions in line with the law. But Sazka managers have said the state should cover the debt.

"We have paid the money to the state instead of the associations," Sazka chief executive Ales Husak said earlier.

Sazka's profit for 2005 was affected by higher sales from lottery, bigger profits from odds betting and sales from non-lottery activities, including ticket sales and the recharging of prepaid cell phone cards.

Sazka is in the hands of civic associations active in the field of sports.