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Lotteries boost Tatts Group earnings in FY18Q1

Strong lotteries jackpot performance boosted Tatts Group revenue for the first quarter of FY18, a boost of 6.8 percent compared to previous year period, according to the latest filing from the operator on Tuesday.

Said revenues for the first quarter of the financial year reached A$743.1 million, while first quarter net profit after tax reached A$67.2 million, an increase of 14.8 percent year-on-year, said the company.

Tatts said it was able to keep good control over its expenses (excluding merger costs) - which lifted EBITDA to A$128.2 million, a year-on-year increase of 9.6 percent.

Of particular note was Tatts’ success with its digital initiatives, which delivered significant growth in digital sales across its lotteries and wagering businesses.

In the first quarter, lotteries revenue was up 8.8 percent, with all three of Tatts’ major draw games showing strong revenue growth. Tatts added that it also saw a strong increase in digital sales growth for this product, with digital sales now representing 16.4 percent of total lotteries sales.

In regards to Tatts’ wagering operation, the group saw turnover lift 1.8 percent in the quarter. Of particular note was a boost in its digital sales channel, which grew 15.8 percent.

Tatts also recorded growth in from its gaming services business, with revenue up 4.7 percent year-on-year.

The quarterly result comes just as the group is looking to finalize its A$11 billion merger with wagering giant Tabcorp. The companies says they hope the deal will be wrapped up by Christmas.

Tatts is set to hold a shareholder vote on December 12 whether to approve the scheme of arrangement of the merger.

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