JACKPOTS BUST TATTS PROFIT
Written on the 16 February 2017 by Business News Australia
AN unprecedented run of jackpot wins has put a damper on Tatts' profit this half, cutting the result by a significant 16.5 per cent compared to 1H16.
Despite delivering a positive statutory net profit of $122.8 million, the company couldn't achieve its previous benchmark of $147 million due to an exceptional 24 jackpots, worth more than $15 million,which went off in the last financial year.
This resulted in an almost 26 per cent decrease in revenue from the group's Powerball and Oz Lotto streams.
Non-jackpotting lotteries, digital platforms and the new UBET channel preserved the company's financial luckin the first half, rounding out its overall revenue of $1.425 billion.
Tatts CEO and managing director Robbie Cooke (pictured) said the result was sound overall despite the challenges presented by a consistent string of mammoth payouts.
"We exited the first half of 2016 with 24 jackpots at or above the influential $15 million level - the strongest jackpot run in the history of our business," said Cooke.
"It was always going to be a herculean task to match this and the outstanding revenue it delivered.
"Pleasingly though, the performance of our non-jackpot games including our largest game, Saturday Lotto, stepped up as expected in softer jackpot period."
Cooke also noted the strong performance of the company's newer UBET brand, both in terms of its bricks-and-mortar and online channels.
"The repositioned UBET brand, which has been in the market for about 20 months now, continued to deliver improved turnover outcomes in our retail network," says Cooke.
According to Cooke a total of 280 wagering outlets have been upgraded to the new UBET format and so far the agencies have "outperformed their non-refurbished regional peers by 6.5 per cent".
The company has declared an interim dividend of 9.5c to be paid on 3 April with the record date set at 7 March.
Tatts stock is currently trading down 3.1 per cent at $4.04.
Author: Business News Australia