Lotteries and wagering giant Tatts Group says a $50 million jackpot has it off to a strong start in the new financial year, after a six per cent fall in profit for the year just ended.
Tatts Group's net profit in the year to June 30 slid to $220.5 million as it was hit by fewer major jackpots poor weather for the racing season, and costs linked with the company's planned merger with Tabcorp.
Chief executive Robbie Cooke did not provide earnings guidance for the 2017/18 financial year, but said net profit from its continuing operations in July was up 25 per cent on the same period a year earlier.
The company benefited from an Oz Lotto jackpot sequence in July that culminated in a $50 million prize on July 18.
"Clearly the balance of how the year plays out will very much depend on the jackpot roll, and it is too early to make a definitive call," Mr Cooke said.
Tatts said a markedly lower jackpot run 2016/17 contributed to $138 million revenue hit.
Earnings from lotteries, which account for 66 per cent of group earnings, fell nine per cent to $290.5 million.
Tatts' UBET wagering business turnover fell 6.9 per cent to $3.8 billion, partly due to bad weather, which caused the loss of 347 more thoroughbred, harness and greyhound races than in the previous year.
Wagering earnings fell 22 per cent to $90.3 million.
Tatts also absorbed $23.4 million in costs linked to its proposed merger with Tabcorp.
Mr Cooke said the proposed merger would continue to be a key focus for the rest of 2017, and if all regulatory approvals are secured the merger is expected to close in the last quarter of the year.
Tatts shares were nine cents higher at $4.02 on Thursday.
FEWER LOTTERY JACKPOTS CRIMP TATTS PROFIT
* Full-year net profit down 5.7pct to $220.5m
* Revenue down 8.4pct to $2.8b
* Final dividend unchanged at eight cents, fully franked
