Australian gambling giant Tatts reported a profit of AU$220.5m to June 30, a drop of 5.7 per cent on last year.

Tatts

The reasons given for the slide in profits were a lower jackpot run, with only 31 major jackpots compared to 45 in 2016, bad weather affecting sporting events and the costs of the ongoing merger with Tabcorp Holdings, which has thus far run up $23.4m in costs.

Tatts noted that it has grown its digital traction over the last four years, both in lotteries and betting operations, while delivering top results online. Digital lottery sales increased by 14.5 per cent, up one per cent on 2016.

More digital growth was to be found with Ubet increasing its digital turnover from 30.2 per cent to 31.7 per cent in the same period. Tatts gaming operation Max also lifted its turnover to $7.7m from $3.4m in the 2016 financial year - an increase of 125.6 per cent.

Tatts has also made a strong start in the 2018 financial year, thanks to an Oz Lotto jackpot run that has given a 25 per cent lift in after-tax profits for July.

Looking forward, the group has achieved a significant win in its lotteries unit with the grant of an exclusive licence to conduct public lotteries in Victoria for a further 10-year term, with this new licence commencing on July 1, 2018. Chief executive Robbie Cooke confirmed, however, that the Tabcorp merger would, “continue to be a key focus for the rest of 2017 and, if all regulatory approvals are secured, the merger is expected to close in the last quarter of the year.”