Australian gambling operator Tatts Group announced the sale of its UK-based slots subsidiary Talarius to Austrian gaming equipment manufacturer NOVOMATIC for the amount of A$210 million.
Tatts said in a statement from earlier today that the sale of its UK business would result in a A$50-million accounting loss for the current financial year. Excluding Talarius, the gambling operator expects to generate net profit of between A$255 million and A$265 million by the end of 2016. In comparison, analysts have predicted full-year net profit of between A$259 million and A$282 million.
The Australian gambling operator also explained that its annual net profit will also be affected by after-tax interest charge and legal fees of A$22.4 million it will have to pay in relation to a lawsuit it had filed against it regarding its slots license in Victoria.
Commenting on the announcement about Tatts selling its UK slots business, CEO Robbie Cooke said in a statement that they have decided on the move after continuing efforts to improve Talarius’ performance did not prove to be successful. The Australian company acquired its subsidiary back in 2008 but according to its Chief Executive, it has been struggling since the moment of its acquisition.
Last year, Talarius contributed only A$6.2 million or 2% to Tatts’ earnings posted for the full financial year. The Australian operator said that it would use proceeds from the sale to pay out corporate debt.
Generally speaking, Talarius operates chains of slot machine venues under the Quicksilver, Winners, Silvers, and Quicksilver Motorway Services brands. Such venues can be found in a number of cities and other locations across the Untied Kingdom. At present, Talarius and its brands operate more than 7,500 gaming machines.
As mentioned above, Tatts has sold its UK-based business to Austrian gambling giant NOVOMATIC. The group is known to be one of the biggest producers, distributors, and operators of gaming-related products in the world. NOVOMATIC buying Talarius comes as part of the Austrian company’s strategy to expand its global presence.
It has just been announced that NOVOMATIC would also purchase a majority stake in another Australian gaming company – Ainsworth Game Technology, which is known for the production and distribution of gaming machines and related solutions to the international gambling industry.
