An “exceptional” run of jackpots last financial year significantly boosted the earnings of Tatts Group’s lotteries business.
Tatts, which also operates a wagering business and gaming machine monitoring services, says its lotteries business grew revenue by 14 per cent in the 2012/13 financial year, the highlight of a strong trading performance.
“The jackpot run in FY13 (financial year 2012/13) played in our favour, with 39 jackpots at or above $15 million in the year compared with 22 in FY12,” Tatts said on Thursday.
Powerball and Oz Lotto were the standout games for the year.
Powerball was changed during the year to produce more jackpots and increase the number of winners.
Tatts made a net profit of $247.3 million in 2012/13, down 22.5 per cent on the previous year due to the loss of Tatts’ licence to operate poker machines in Victoria in August 2012.
The group has had a positive start to the new financial year, with the first month of trading comfortably ahead of July in 2012.
Lotteries has had an excellent start, but wagering was a little more subdued due to the weather and a run of wins by favourites in the major football codes.
Managing director Robbie Cooke said Tatts was looking to boost online demand for its products in both lotteries and wagering.
“This is seen as one of the more significant marketing opportunities for the group,” he said.
In the 2012/13 financial year, profit from Tatts’ continuing businesses rose 41 per cent to $227.4 million.
Revenue from the wagering division rose five per cent, due to the first full year contribution from the recently acquired Tote Tasmania, and the increasing popularity of fixed odds betting.
Mr Cooke said 2012/13 had been an outstanding year for Tatts, with its continuing operations performing ahead of expectations.
Tatts shares were up four cents at $3.21 at 1522 AEST.