Lotteries and wagering firm Tatts Group has sold its struggling UK-based slot machine and internet gaming operator Talarius to international gaming group Novomatic for $210 million.
Tatts said on Monday that the sale will result in an accounting loss of about $50 million in the 2016 full financial year, with proceeds used to repay debt.
"The sale of Talarius follows three years of intense effort to improve the performance of a business that struggled since its acquisition by Tatts back in 2008," Tatts chief executive Robbie Cooke said.
Tatts expects its 2016 net profit from continuing operations, excluding Talarius, to be between $255 million and $265 million.
That compares to analysts' expectations of $259 million to $282 million, which includes Talarius.
Tatts said that up until May 31, revenues from lotteries operations were up 8.7 per cent, and wagering turnover was up 4.2 per cent.
Online sales for lotteries were up 33.3 per cent and online sales for wagering were up 22.9 per cent.
Talarius contributed just $6.2 billion, or less than two per cent of Tatt's earnings, in 2015.
Shares in Tatts were four cents lower at $3.82 at 1039 AEST.
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