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

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