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Poor weather, fewer jackpots weigh on Tatts results

Lotteries and wagering giant Tatts Group posted a 5.7 percent decline in net profit for the financial year ending June 30, 2017, impacted by fewer major jackpots, and poor weather in the racing season.

Tatts said despite profit being down from last year, its results were strong - absorbing significant merger costs (A$23.4 million net of tax), and taking a hit on revenues, which came in at A$2.8 billion (US$2.2 billion), down 5.1 percent year-on-year.

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

Tatts said lottery digital sales increased to 14.5 percent of sales (from 13.5 percent a year ago). The company’s wagering arm, UBET, saw its wagering business turnover fall 6.9 per cent to A$3.8 billion.

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

“Our ‘break and fix’ (MAXtech) business is now showing the benefit of the turnaround strategy implemented over the last 3 years which involved refocusing on our core expertise in gaming and network infrastructure,” said the company in a press release.

Tatts CEO Robbie Cooke did not provide profit guidance for 2018, but noted that the company started the year extremely well with net profit after tax in July up 25 percent year-on-year.

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