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Tatts says positive start to H2

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AAP

2013-02-21

Lotteries and wagering operator Tatts Group says it has had a positive start to the second half of the 2012/13 financial year.

Tatts on Thursday booked a net profit for the six months to December 31 of $128.3 million, down 23.1 per cent on the prior corresponding period's net profit of $166.9 million.

The bottom-line result was pulled back by the discontinuation of Tatts' poker machine operations in August 2012.

Tatts' net profit from continuing activities lifted 25.8 per cent to $108.7 million.

"The group has had a positive start to the second half," Tatts said in a statement on Thursday.

"TattsBet's performance in January has seen wagering sales and revenues growth continue very much in line with the first half."

Win rates had continued to improve, compared to the same period last year.

"Similarly, the group's lotteries operation has had a good start to the second half, benefiting in particular from the contribution of SA Lotteries."

Tatts said the lift in revenue from the acquisition of SA Lotteries would be partially offset by higher interest costs.

"In considering the likely second half performance of the lotteries operation it would be unreasonable to expect a similar jackpot run to the exceptional levels experienced in the first half," Tatts said.

"The group's other continuing operations in January traded at similar levels to the first half."

Tatts' total revenue fell 13.5 per cent to $1.7 billion.

Revenue from continuing activities rose 15.9 per cent to $1.54 billion.

The company declared an interim dividend of eight cents per share, fully franked, compared to 11 cents in the prior corresponding period.

Shares in Tatts were three cents higher at $3.34 at 1114 AEDT on Thursday.