Post-merger operations impacted by costs and impairment charges
Costs and impairment charges are apparently the culprits as overall revenues rose 3.6 percent year-on-year to to AU$2.9 billion, with the lotteries and digital divisions the main contributors.
Tatts suffered increases in merger-related costs, up 26.6 percent to A$42.3 million, and $149 million in impairment charges relating to the UBET online business.
The operator’s profit after tax plunged 83.6 percent to A$36.2 million.
Lotteries generated revenue of A$2.1billion, up 4.9 percent derived from over 2.9 million online punters, whilst Digital turnover was up 12.9 percent, boosted by a successful FIFA World Cup and new products such as Tappy, UBET’s cash-based betting product.
Wagering revenue fell marginally year-on-year to A$530 million.
Tatts reported operating expenses up 14 percent at A$473.6 million, and expenditure on taxes, fees and commissions up 3.4 percent at A$1.9 billion.