Tatts Group suffers full-year profit fall

Australian gambling company Tatts Group said it is well positioned for a ‘successful’ 2015 despite having suffered a year-on-year drop in revenue and statutory net profit after tax (NPAT) during the 12 months through to June 30, 2014.

The firm posted statutory NPAT of AUS$200.4 million (€140.1 million/US$186.2 million) in the 2014 fiscal year, which is down 19% on the AUS$247.3 million achieved in the previous year.

Revenue at the company also fell by 2.8% from just under AUS$3 billion in fiscal 2013 to AUS2.9 billion in the last 12 months.

However, Tatts Group was able to post growth elsewhere with record lottery results, continuing migration online and benefits of the interest cycle helping to drive profit before tax to AUS$326.6 million, a 7.8% increase.

In addition, earnings before interest, tax, depreciation and amortisation jumped 1.7% from AUS$490.2 million in the previous year to just under AUS$500 million.

Earnings before interest and tax also increased 2.1% from AUS$406.1 million to AUS$414.5 million.

Earlier this year, Tatts Group said it was confident of posting positive full-year results despite having suffered a drop in net profit during the first six months of the year.

Robbie Cooke, managing director and chief executive officer of Tatts Group, 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

“With a pipeline of exciting initiatives for launch, the group is well positioned for a successful FY15.

“The year has commenced strongly from a trading perspective – with both wagering and lotteries off to a great start.”

source : www.igamingbusiness.com

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