Tatts Group sees 19% profits fall in 2014

robbiecooke
Robbie Cooke, Tatts Group CEO

Australian betting and lottery operator Tatts Group reported a weaker than expected full year 2014 (ending 30 June) company performance, as group revenues fell 8% to  $ 2.9 billion, further resulting in  Tatts Group witnessing a net profit slump of 19% to $200 million.

Tatts Group performance was impacted negatively by a $42.6 million health benefit levy charged by the Victorian government , which undermined net profit for the operator.

The operators sports wagering slumped by 7.4% to $144.1 million The operator has secured retail exclusivity for QLD Racing and Sports until 2044.

Online sports bets generated 22.9% of the unit’s total sales (20.2% in 2013). TTS considers itself on track to grow this business following the establishment of a new operating framework. While Gaming income improved, it still only contributed $51.3 million to EBIT.

In announcing the result Robbie Cooke, Tatts’ CEO and Managing Director, said:

“Outperforming the Group’s FY13 result was never going to be an easy task given the exceptional run of lotto jackpots in that year, coupled with the investment ‘ramp-up’ this year in our wagering operation – an essential step to repositioning our business for future success. So, against that backdrop, I am pleased with the result achieved in the reporting period, which saw the positive combination of record lotteries earnings, online migration and lower funding costs drive our performance”.

Company Performance Overview

Tattsgroup1

 

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