Tatts profits down despite digital surge

Gaming group Tatts reported record lottery takings and a surge in digital gaming, despite posting a 7% drop in net profits for the year through to June 30.

The Australian operator made Aus$233.8 million (€159 million/$180 million), well down on the previous 12 months due to losses accrued through its sale of UK slots operation Talarius and the cost of pokies compensation litigation.

However, Tatts’ underlying business remained strong, with net profit from continuing operations rising 4% to Aus$263.4 million on strong digital sales and a big rise in revenue from lotteries.
Total revenue was also up 4% to Aus$3.03 billion.

The company’s lotteries segment posted record results, with revenue rising 8% to Aus$2.14 billion.

Lotteries' digital sales grew by 32%, and wagering's digital sales rose 22.5%.

Tatts now generates more than 30% of its wagering sales and 14% of lotteries sales online.

“All-in-all, our business renewal programme is delivering, it positions us well for future growth, and has at its core a focus on maximising value from our unique portfolio of gambling assets,” chief executive Robbie Cooke said.

Tatts was ordered to repay Aus$540.5 million plus interest to the Victorian government in March as it lost a compensation battle that stretched back to 2012. It also took a Aus$12.8 million loss on the sale of Talarius to Novomatic in June.

“We are achieving online growth never accomplished in the business before. In both wagering and lotteries our digital traction is outstanding,” Cooke said.

“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.”

Related article: Tatts boosted by lotteries in first half