More big jackpots boost Tatts profit

Tatts Group says a run of big lottery jackpots has helped boost its profit, and online sales in both lotteries are wagering are strong.

An unprecedented number of big lottery jackpots has helped boost Tatts Group's first-half profit by 5.2 per cent.

The lotteries, wagering and gaming services firm says that in the first six months of the financial year, there were 24 jackpots at $15 million or above, compared to 18 in the prior corresponding period.

That helped lift revenue from the Tatts lotteries business by 9.6 per cent to $1.1 billion.

The lotteries business also boosted online sales by 34.8 per cent; 13.23 per cent of all Tatts' lottery sales are now online.

Tatts' first new draw-lottery game in 20 years, Set for Life, performed ahead of expectations, with 22 per cent of sales coming from digital channels.

Tatts on Thursday reported a net profit of $147.0 million for the six months ended December 31, up from $139.8 million a year earlier.

"The stellar performance of lotteries is a highlight for the half," Tatts chief executive Robbie Cooke said.

"Across all measures, our lotteries operation posted record-breaking performances."

In wagering, turnover lifted by three per cent to $2.14 billion, but revenue fell 3.9 per cent to $326 million, impacted by a lower win rate.

More punters were betting online, with 28.8 per cent of all wagering turnover online during the first half, up from 24.8 per cent in the prior corresponding period.

Fifty-four bricks-and-mortar wagering outlets had been upgraded under the new UBET brand and format since it was launched eight months ago.

Tatts said the retail outlets under the UBET format were outperforming nearby outlets that had not been refurbished, demonstrating the untapped potential in the bricks-and-mortar network.

Tatts expects to convert about 100 more retail outlets to the UBET format over the next six months.

Mr Cooke said the increase in online traffic in both the lotteries and wagering business reflected the most compelling online traction that Tatts has ever seen.

"The digital outcomes achieved in both lotteries and wagering is nothing short of outstanding," he said.

Mr Cooke said Tatts had 3.5 million people visiting its lotteries and wagering websites each month, and Tatts' apps had been downloaded on more than a million devices.

RECORD LOTTERIES JACKPOTS BOOST TATTS

* First-half net profit up 5.2pct to $147m

* Revenue up 6.5pct to $1.6b

* Interim dividend of 9.5 cents per share, fully franked, up from nine cents


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Source: AAP



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