Tatts first quarter profit jumps

Business News

Tatts Group’s first quarter net profit has jumped almost 15 per cent, boosted by a string of bigger-than-usual multi-million dollar lottery jackpots.

The gambling group’s post-tax net profit from continuing operations for the three months to September 30 was $67.2 million – up 14.8 per cent on the same time last year, while revenue grew 6.8 per cent to $743.1 million.

Tatts said a strong lotteries performance, backed by eight jackpots of $15 million or more and a jackpot pool value average of $32.5 million, helped drive lotteries revenue up 8.8 per cent in the quarter.

The average first division pool a year ago was just $25 million.

Digital lotteries sales growth, which represents 16.4 per cent of total lotteries sales, also increased by almost 30 per cent, the company said on Tuesday.

Tatt’s wagering division delivered a 1.8 per cent lift in turnover but was offset by a softer win rate at 15.3 per cent, compared to 15.6 per cent in the prior corresponding period.

Meanwhile, revenue from Tatt’s gaming services business, MAX, was up 4.7 per cent on a year ago, thanks to a monitoring price increase in NSW and sales growth in Tatt’s value-adding products and services.

The gaming giant said the overall revenue increase and well-controlled expenses had also helped deliver a 9.6 per cent lift in earnings to $128.2 million for the period.

Tatts is set to merge with Tabcorp to create an $11 billion gaming giant, with shareholders to vote on the move on December 12.

Tatts shares dropped two cents to $4.31.