Australian betting and gaming operator Tatts Group posted sizable increases in revenues and profits for the 2013 financial year after factoring out the loss of the company’s lucrative machine gaming license in Victoria.
Managing Director Robbie Cooke characterized the year as “outstanding” despite a 16.3% drop in earnings on revenue of A$3.1 billion, which was down 20.1% from FY2012. However, after adjusting for the impact of the Victoria slots operations, which ended 46 days into FY2013, revenue was up 11% to $2.95 billion, earnings rose 17.9% to $490.2 million, and profit was up a robust 40.8% to $227.4 million.
Wagering revenue from the company’s 1,260 retail outlets and 117 race clubs rose 5.2% to $655.7 million, thanks to a full year’s contribution from Tote Tasmania, which Tatts acquired in March 2012.
Significantly, online betting revenue jumped 21.5%, and online’s share of overall wagering improved to 20.2% from 16.9%.
In line with this, Mr Cooke said the company was undertaking a “brand revitalization program” to align its retail, online and traditional media presence. This includes a redesign of its Tatts.com Web site and development of new mobile and tablet apps to better compete domestically and internationally.
“Innovation in our wagering offering will be critical to our continuing success,” he said.
