Friday August 24,2012 : TATTS POSTS FY 2011 RESULTS
Aussie gambling group reports a 16 percent rise in net profit
Losing out on pokie machine revenues in 2012-2013 should not unduly slow down Aussie gambling group Tatts, which has posted its annual results to June 30 2012, with a notable 16 percent rise in net profit to A$319.1 million.
The rise is attributed mainly to strong performances from a growing lottery business (up 15.8 percent to A$202.6 million) and from wagering (which reached A$136.3 million).
Revenues topped A$650.2 million
Tatts's pokies business, which has traditionally made a contribution to earnings of around 13 percent, will stop operating during the 2012/13 year. The company lost its pokies licence without compensation from the Victorian government in 2008 and is currently in litigation with the provincial government, claiming some A$490 million.
"Importantly, Tatts Pokies will exit the company with a small contribution and not drag on profits generated elsewhere as a result of redundancy costs," the company said, revealing that Tatts pokies was comparatively subdued with a 2.3 percent increase in revenue over the financial year.
Some analysts predict that the group's earnings in the 2013 fiscal year will reach A$590 million, delivering profits of A$210 million.
Management said it expects 2013 to be a strong year thanks to improved margins and the integration of Tasmania's Tote Tasmania into the business.