Tatts numbers flat in first half
The Age
Friday February 26, 2010
LOTTERY numbers were up but pokies revenue fell in the first half of the financial year, giving Tatts Group a flat result while it awaits big decisions on its future.Tatts reported a $145 million profit, just 0.2 per cent higher than the same time last year, chief executive Dick McIlwain said yesterday.Revenue was up 1.2 per cent to $1.6 billion and shareholders will receive a 10 dividend.Lottery earnings before interest and tax were up 15 per cent to $53 million, partly attributed to an $80 million Powerball jackpot in July.Tatts is yet learn whether it has won the right to run NSW lotteries for the next 40 years. When told by a reporter, Mr McIlwain said it was news to him that the group was one of the final two bidders (with the Ontario Teachers Pension Plan), but he was pleased to hear it.The Victorian government has announced the end of the state Tatts-Tabcorp duopoly in 2012. Mr McIlwain said it was not possible to consider investments in venues before poker machine licences were auctioned, or whether Tatts would be seeking compensation.Revenue from the company's 13,200 poker machines in Victoria was $639 million, with earnings before interest and tax down 13 per cent to $101 million.Mr McIlwain said this was due to new maximum spending limits of $5, the absence of government stimulus payments and a growing social stigma about playing pokies.Tatts spent $5.2 million in the first half to comply with the new limits, he said, but expects its pokies expenses for the full year to be lower than 2009.Mr McIlwain said the biggest headache for the group was its British operation, comprising 218 venues with 8650 machines, which had a $3.3 million loss. Since December, the European Gaming Group has closed 34 venues in Britain, at a cost of 9.2 million ($A15.9 million).Tatts shares closed down 4 at $2.34. The dividend is due to be paid on April 6.
© 2010 The Age
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