GAMBLING and lottery giant Tatts Group announced great success of their online Casino Gambling activities and are looking to expand in the online pokies arena.
On February 21 Tatts announced that their net profit for the last half of 2012 totaled $128.3 million. This is a 23.1 per cent loss from the same time of the previous year, during which profits totaled $166.9 million. This loss can be attributed to the expiration of Tatts’ license to operate slot machines in Victoria, shutting down a significant revenue stream.
Offsetting that blow is a 52 per cent increase in revenues from lotteries and 22 per cent increase in sales of their online slots. That being the case, Tatts CEO Robbie Cooke is optimistic:
“We do believe there are a lot of opportunities to take the online business further, and there are a lot of things that we haven’t done yet that are still available to us.” He said on Thursday. Cooke also stated that Tatts did very well in the first six months of the 2012/213 fiscal year, and that lotteries were the clear big earner.
Twenty-one jackpots in Oz Lotto and Powerball made it over the $15 million mark, as opposed to only nine in the previous year. This is indicative of the 20 per cent climb in revenue in the lotteries business, now totaling $1.1 billion.
TattsBet, the wagering business of the group, had an increase in revenue of seven per cent to total $344.9 million due to increased win rates and Tatts’ recent acquisition of TOTE Tasmania.
Online pokies and other online wagering sales experienced growth of 22 per cent and currently represent 19 per cent of all of the group’s wagering sales, as more and more people move from phone betting to internet betting.
Tatts feels good about the start to the latter half of their fiscal year, with TattsBet all ready creating revenue on par with the first one, alongside continually improving win rates.
The groups lotteries business is doing similarly well with the addition of SA Lotteries, with whom Tatts began a 40-year management agreement in December 2012. Unfortunately this acquisition comes at higher costs in interest.
While still feeling positive, Tatts says they don’t expect the first half’s extraordinary run of jackpots to repeat itself.
Shares in Tatts Group were at $3.25 on Thursday, six cents down.