UK adult gaming centre operator Talarius made a positive contribution to parent company Tatts Group’s FY14 results for the first time since its acquisition.
The Australian gaming group reported a 7.8 per cent increase in profit before tax to AU$326.6m (£182.7m) compared with the 2013 financial year. Profit after tax was down 0.3 per cent to $226.6m due to a one-off $16.2m tax benefit occurring in FY13, which distorted the comparison. Excluding this benefit, like-for-like after tax profits increased by 7.3 per cent.
Talarius, described by the company as a “standout performer,” reported revenues of $103.6m, up 32.8 per cent on the $78m recorded in the previous period. EBITDA at the Quicksilver AGC operator jumped 76.6 per cent to $13.6m.
“What makes this result all the more pleasing is it reflects the significant effort invested in the business by our UK team,” Tatts CEO Robbie Cooke said in the company’s annual report. “This has seen the operation steadily improve in what has been an extremely challenging economic environment over the past four years - with a controlled investment of resources and in a competitive landscape that more favoured the fixed odds betting terminal (FOBT) operators.”
Underpinning Talarius’ strong performance, he said, was like-for-like sales growth driven by the refurbishment of profitable venues and extending operating hours at venues to meet customer demand. It also introduced server-based gaming during the year, with initial results showing positive incremental sales growth. This trial will be extended during the 2015 financial year.
Talarius’ motorway service station gaming areas and the three sites acquired from Kellams in FY13 are both performing “ahead of expectations.”
Peter Harvey, chief operating officer at Talarius, said: “In 2014 we executed our strategy to lay a foundation for long term growth and drive the business forward. We are already seeing the benefits of the development initiatives we implemented to increase sales, which includes the refurbishment of our venues, increased investment in our staff and machine estate while always maintaining a tight control on costs.
"Looking ahead, the strong momentum has continued into the first half which gives us confidence of continued growth in 2015.”
