F.Y. PROFITS FALL AT AUSSIE GAMBLING GROUP
21st August, 2014 at 09:46:35
Tatts sees net profit after tax decline 19 percent.
One of Australia's leading online and land betting groups, Tatts, has posted full year results that will be disappointing for shareholders, reporting a 19% y-o-y drop in net after tax profits for the twelve months ended June 30 2014.
Talking points in the firm's report include:
* Net profit after tax down 19% at A$200.4 million;
* Revenue down 2.8% at A$2.9 billion;
* Good lottery growth, with a 7.8% rise in profit before tax of A$326.6 million;
* EBITDA up 2.1% to A$414.5 million;
* Online sports bets generated 22.9% of total sales (20.2% in FY 2013);
* Gaming income improved, contributing A$51.3 million to EBIT;
* Sports wagering declined 7.4% to A$144.1 million, but Tatts secured retail exclusivity for QLD Racing and Sports until 2044.
Chief executive Rob Cooke said that the preceding year had been a hard act to follow due to exceptional lottery performance, and that the latest results were adversely impacted by a A$42.6 million health benefit levy charged by the Victorian provincial government, which undermined net profits.
Cooke added that the group has exciting initiatives in the pipeline, and is well positioned for the year ahead, with trading strong in the opening months of lottery and wagering operations.
Related News Tags: Lotteries, Australia