Pokies loss hits profit
Profits in gambling dynamo Tatts have sunk 22.5 per cent after the Victorian government broke up its pokies duopoly with Tabcorp.
Net profit for the 12 months to June 30 was $247.3 million, down from $319.1 million for the previous corresponding period.
Tatts managing director Robbie Cooke said the loss of its lucrative Victorian pokies business had distorted its balance sheet. He said a more accurate comparison was to exclude the pokies division, which contributed 46 days to the company's bottom line last financial year. That reveals a rosier picture.
Based on continuing operations, full-year net profit rose 40.8 per cent to $227.4 million, compared with last year's $161.5 million.
"[That] shows how our business will look on a go-forward basis with the final curtain now drawn on our Victorian pokies business," Mr Cooke said. Investors agreed, with the group's shares advancing 4¢, or 1.3 per cent, to $3.21.
An "exceptionally strong" performance in its lottery sales bolstered Tatts' earnings, with 39 jackpots in Oz Lotto and Powerball at or above $15 million last financial year. This compares with 22 jackpots for the previous corresponding period.
The company will pay a final dividend of 7.5¢ a share on October 7, taking the full year dividend to 15.5¢, compared to 23¢ in the previous financial year.
InvestSMART FORUM: Come and meet the team
We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.
Want access to our latest research and new buy ideas?
Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.Sign up for free