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REPORTING SEASON: Tatts Group (TTS)

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Figure 1: Tatts Group 12 month chart

 

Tatts Group (TTS) earnings improve despite fewer jackpots

 Tatts Group (TTS) posted a largely expected half-year profit of $139.8 million for the six months ended 31 December 2014.

 Earnings were driven by its Lotteries division which accounted for 67% of group revenues. TTS had 18 jackpots above $15m; four less than the previous corresponding period although the unit’s revenues still rose by 1.3%. Online sales lifted by 18.4% and now account for 10.8% of lotteries sales.

 TattsBet (its wagering business) accounted for 22% of revenue and improved by a modest 0.4% over the half. Revenue generated online now accounts for 24.8% of the Wagering division’s total sales; twice as much as five years ago. Its Gaming Solutions unit which is involved in machine monitoring was the smallest contributor to the earnings.

 TTS will pay out a fully franked interim dividend of $0.09/share on 2 April 2015.

 The outlook for the second half remains unchanged. One of the group’s aims will be to relaunch its wagering business as UBET in the first half of this calendar year.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Steven Daghlian, Market Analyst,