Tatts net profit down 5.7 percent

In what could well be its last annual report as a standalone company as it heads for a merger with Tabcorp, the Australian betting group Tatts has posted a 5.7 percent drop in net profit for the financial year ended June 30 2017.

The company blamed fewer major jackpots and poor weather in the racing season for the decline, but claimed that its performance was strong despite absorbing merger costs of A$23.4 million and reduced revenues, which came in at A$2.8 billion (US$2.2 billion), down 5.1 percent year-on-year.

On a continuing pre-merger costs operations basis the group reported an after-tax profit of A$244.6 million.

Digital lottery sales outperformed other divisions in the group, reporting sales up 14.5 percent (from 13.5 percent a year ago), but the company’s wagering arm, UBET, saw its turnover fall 6.9 percent to A$3.8 billion.

Tatts gaming operations, known as MAX, saw EBITDA rise 10.7 percent to A$75.4 million.

CEO Robbie Cooke said the company restructuring to focus on core business over the last three years was now delivering benefits, and he revealed that the group has started its new financikal year “extremely well” with net profit after tax in July 2017 up 25 percent year-on-year.

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