Prize bond sales hit record €143.2m

PRIZE BOND sales hit a record high of €143.2 million in 2007, the 50th anniversary of their launch.

Repayments to existing bond holders amounted to €102.9 million, resulting in net sales of €40.3 million for the year. Over the year the total of tax-free prizes paid to lucky winners rose 15% to €15.9m while the value of the prize bonds fund rose 7% to €631.1m.

Sales through the online channel recorded a significant rise of 73% to €19.9m as more people used the internet to buy bonds.

Chairman Michael O’Keeffe said the group faced a challenging year in 2007, but the new prize structure boosted sales in the final quarter.

Founded in 1957, the Prize Bond scheme is Ireland’s longest running prize draw and has paid out over €250m prizes to prize bond holders. During the year the monthly Jackpot prize rose from €150,000 to €500,000, and that was increased to €1m in the December draw.

The chairman said the intention was to keep the prize structure under constant review.

The unit price of a prize bond is €6.25 with a minimum purchase of four units, at a total cost of €25.

All prize bonds enter a weekly cash draw with over 2,500 prizes offering a star prize of €20,000.

The top prize in the monthly Jackpot prize draw is €1,000,000 and is paid out four times a year — €500,000 is paid out over the other eight months.

The Prize Bond Company Limited was established as a joint venture between An Post and FEXCO in 1989 to operate the Prize Bonds Scheme.