Tatts posts narrowed net profits in FY17H1

Australian wagering giant Tatts Group saw a narrowing of net profit in the first half of the 2017 fiscal year, down 16.5 percent to A$122.8 million.

The result “reflected both the challenge of cycling over last year’s all-time record Powerball and Oz Lotto jackpot run, and the continuing investment required for UBET to sustain its position in what is a hypercompetitive sector.”

The group however, saw strong growth in its portfolio of non-jackpotting lottery games, which saw revenue growth of 6.9 percent in the half year.

UBET also saw an increase in blended win-rates to 15.6 percent up from 15.2 percent in FY16H1. The increased win rates allowed its fixed price sports betting revenue to increase 22.5 percent in the half year.

Tatts also said it witnessed stable performance in the group’s gaming operation.

Group revenue was A$1.4 billion in the FY17H1, down 6.9 percent from the prior comparable period. EBITDA was down 11.5 percent to A$235.1 million.

Tatts has announced an interim dividend of 9.5 cents per share.