Tatts Reports 7.2 Percent Fall in Annual Profits
Australian lotteries and gaming company, Tatts Group, has a reported a 7.2 percent drop in annual profits to $233.8 million for the last financial year.
The company’s fall in annual profits was attributed to the sale of their UK pokies business, Talarius which resulted in a $12.8 million loss, and to the $540.5 million plus interest that the company had to repay to the Victorian government after losing a poker machine compensation case in March.
However, their digital lotteries performed strongly with digital sales for lotteries growing 32.2 percent to represent 13.5 percent of all lottery sales. Digital wagering sales increased 22.5 percent which now represents more than 30 percent of all wagering sales.
Net profit for the company’s continuing operations increased 3.8 percent to $263.4 million and revenue increased 3.8 percent to $3.03 billion. Tatts reported that revenue, earnings before interest and tax, operating margins and jackpots reached a record increase of 11.3 percent to $320 million from a 15 percent margin.
“We are achieving online growth never accomplished in the business before,” commented Robbie Cooke, chief executive of Tatts. “In both wagering and lotteries our digital traction is outstanding.”
“Looking forward into the year, innovation remains top of our agenda as we pursue organic growth across all our distribution channels.”
“We are now in a cycle of continuous and rapid enhancement of all our digital assets – a significant step forward for our business.”
Mr Cooke has welcomed the federal government’s gambling reform initiative, particularly their plan to ban online in-play betting. Tatts and rival Tabcorp stand together on this issue believing that these reforms will be beneficial for the local gaming companies.
March 27, 2017