Australia’s Tatts Group reports 6.2 percent lift in half-year net profits

Australia’s largest non-casino gambling group, Tatts Group has reported a 6.2 percent lift in half-year net profit to AU$147.9 million (US$105.5 million), according to a recent filing to the Australian Stock Exchange.

The group cited strong online performance in its lotteries and wagering divisions, where online lotteries saw an 34.8 percent increase in performance and online wagering saw a growth of 20.2 percent. 

As a result, Tatts lotteries posted a 9.6 percent lift in revenues to AU$1.11 billion compared to AU$1.01 billion in the preceding period.

The repositioned UBET brand was also mentioned in the announcement, with 54 wagering outlets upgraded to the new UBET format. The new outlets are achieving double-digit growth compared to non-refurbished outlets, according to the release.

“The outcomes in the two businesses are pleasing for different reasons. Wagering is now generated close to 30 percent of its sales online, and even off that high base, digital sales grew an impressive 20.2 percent – not an easy feat. Lotteries online growth rate is a massive 35 percent but is coming from a lower base with digital sales around 13 percent.” said Robbie Cooke, Tatts’ CEO and managing director. “The momentum we are gaining from these digital initiatives in both our lotteries and wagering operations is truly exciting”, Cooke adds.

Given the strong start to the year, the Tatts’ board has determined an interim dividend of 9.5 cents per share.