Australian gambling operator Tatts Group today reported its financial results for the financial year ended June 30, 2016. The company said that the excellent performance of its lottery and online gambling divisions drove an increase in annual revenue.
Group revenue for the reviewed 12 months totaled A$2.93 billion, up 3.8% year-on-year. EBITDA increased 0.8% during the reported period to reach a total of A$494.8 million. EBIT amounted to A$419.6 million, reflecting a 1.3% growth from the previous fiscal year.
Profit before tax on a continuing operations basis increased 4.2% year-on-year to A$378.5 million. Net profit after tax on a continuing operations basis amounted to A$263.4 million, up 3.8% as compared to the figure reported for the former financial year.
Statutory net profit after tax, however, dropped 7.2% to A$233.8 million. The decrease was attributed to the company’s compensation litigation on poker machines, which has recently been concluded, as well as to the loss caused by the recent sale of Talarius – its UK slots business.
Tatts reported a 22.5% growth in online wagering sales for the full fiscal year. These represented 30.2% of the overall sales generated within the period. Lottery sales increased 32.2% year-on-year and accounted for 13.5% of all sales.
Last year, the gambling operator launched Set for Life – a brand new draw lottery game, the first one of this kind to be introduced in Australia in 20 years. Another important highlight related to Tatts’ lottery operations was the rollout of the company’s first dedicated lottery app.
The group was authorized to monitor around 97,000 gaming machines in New South Wales up until 2032. Tatts was also issued an exclusive 20-year retail license for the provision of sports betting options in Australia’s Northern Territory.
Commenting on the full-year results reported and the company’s performance over the past fiscal year, Managing Director and CEO Robbie Cooke said that they have apparently began to bear fruit from their business renewal program. The official further noted that Tatts is now positioned for a further growth in future and will remain focused on maximizing value from its portfolio of gambling assets and catalog of product offering.
Mr. Cooke highlighted the gambling operator’s lottery and digital gambling divisions as the main drivers of the reported revenue growth and pointed to the performance of its UBET brand, noting that it has clearly restored its ability to attract gambling customers in a highly competitive market.
