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Tatts profit drop despite digital growth

Thu, Aug 18, 11:44am by Staff Writer

Significant growth in its digital sector hasn’t prevented lotteries, gaming and wagering company Tatts Group from posting a fall in its net profit for the 2016 financial year of 7.2 per cent.

Tatts were the latest to announce their 2016 financial results during a busy reporting season for Australia’s wagering and gambling companies.

While revenue rose 3.8 per cent to $3.03 billion and net profit for the group’s continuing operations also rose 3.8 per cent to $263.4 million, the sale of the United Kingdom-based slot business Talarius and a repayment of an interest debt to Victoria after the loss of a High Court case saw net profit fall.

The significant growth areas for the business were in digital lotteries, where sales were up 32.2 per cent and wagering online, which rose 22.5 per cent.

“Our lotteries operation delivered record results, our digital initiatives over the last few years are now driving exceptionally strong sales growth, a number of our key licences and authorities to operate were re-secured, UBET proved its ability to attract customers in a crowded market returning to turnover growth, and we successfully launched several new brands and products.” Robbie Cooke, Tatts’ Managing Director and CEO, said

“All-in-all, our business renewal program 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.”

Cooke said the digital aspect of the business was starting the reap the rewards of the hard work Tatts has put in over the past few years.

“It is really satisfying to see the digital initiatives we implemented over the last few years now driving strong sales outcomes,” he said.

“We have put together an expert team of digital marketers and empowered them with market-leading technology solutions. This has been a multi-year exercise and is now demonstrating the value of the investment made with our strongest ever digital sales growth in lotteries, lifting 32.2% to now represent 13.5% of lotteries sales.”

“Equally impressive is the outstanding 22.5% lift in wagering digital sales which saw us transact a record 30.2% of our wagering sales via our digital channel.”

Meanwhile, Cooke welcomed the federal government’s plan to ban digital in-play or ‘click to call’ betting.

“We have been concerned for some time about the behaviour of a number of foreign and domestic operators using tricky means to circumvent, at the very least, the spirit of Australian laws,” Cooke said.

Tatts has revealed it is in negotiations to buy the local gaming monitoring operations of Greek wagering business Intralot for around AU$100 million.

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