Tatts profits fall

One of Australia’s leading online and land betting groups, Tatts, has posted full year results that will be disappointing for shareholders, reporting a 19 percent y-o-y drop in net after tax profits for the twelve months ended June 30 2014.

Talking points in the firm’s report include:

* Net profit after tax down 19 percent at A$200.4 million;

* Revenue down 2.8 percent at A$2.9 billion;

* Good lottery growth, with a 7.8 percent rise in profit before tax of A$326.6 million;

* EBITDA up 2.1 percent to A$414.5 million;

* Online sports bets generated 22.9 percent of total sales (20.2 percent in FY 2013);

* Gaming income improved, contributing A$51.3 million to EBIT;

* Sports wagering declined 7.4 percent to A$144.1 million, but Tatts secured retail exclusivity for QLD Racing and Sports until 2044.

Chief executive Rob Cooke said that the preceding year had been a hard act to follow due to exceptional lottery performance, and that the latest results were adversely impacted by a A$42.6 million health benefit levy charged by the Victorian provincial government , which undermined net profits.

Cooke added that the group has exciting initiatives in the pipeline, and is well positioned for the year ahead, with trading strong in the opening months of lottery and wagering operations.

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