Tatts boasts huge Revenue Boost from Online Gambling, Lottery Sales
Tatts Group is Australia’s largest non-casino gambling operator, providing sports betting and lotteries over the internet and through more than 1,250 retail outlets across the country. The company’s interest in online gambling has been divided among the media these days, countering attempts from rivals to legalize in-play betting over the internet, yet it’s Tatts’ online sales that are driving the operator to new heights in 2016.
This morning, Tatts posted its revenue stream for the second half of 2015, July to December, proudly boasting a 6.5% increase in overall sales to $1.61 billion. That represents a net profit of $147 million for the company, up 5.2% over the previous 6-month figures.
Tatts Credits Online Gambling Sales
Tatts credited the impressive boost to amplified success in its online gambling sector. CEO Robbie Cooke found the news “truly exciting” as digital initiatives in lottery and sports betting are clearly gaining momentum.
The report indicated “exceptionally strong online traction, record lotteries performance and continued improvements in funding arrangements”. Tatts added, “The group’s online performance in its lotteries and wagering divisions was nothing short of outstanding.”
Revenue from lotteries rose 9.6% to $1.1 billion, accounting for about two-thirds of the group’s overall revenue stream. Online lottery sales played a much larger role in the final six months of 2015, increasing 34.8%. Internet sales now make up 13.2% of Tatts’ total intake from lottery.
“We have access to an exceptionally large online audience with on average 3.5 million people visiting our lotteries and wagering websites on a monthly basis,” said Cooke. “Our apps have been downloaded on over 1 million devices which has doubled in the last year, and we are achieving over 14 million impressions on our various social media sites per month.”
The CEO went on to explain Tatts strategic goals for the future. “The power of this network is considerable and getting our interactions with this audience right will continue to unlock significant value over the coming years.”
Future Bright for Tatts Group
Tatts’ shares were equally resilient in the second half of 2015. The company said trading over that period was “trending strongly”, and expected similar results over the next 12 months as they prepare to implement an “aggressive list of initiatives” in 2016.
The live and online gambling group confirmed its intentions to launch a new lottery website and mobile app. They are also prepping for the rollout of digital POS for its online lotteries, and the launch of a collection of virtual sports and racing games.
Online In-Play Betting Still a Thorn for Tatts
The one thing Tatts won’t be doing is supporting the current initiative from rival sports betting operators to amending Australia’s gambling laws to allow in-play betting over the internet. That’s one area where Tatts supersedes its online-only competition, by providing ‘lawful’ in-play wagers in person at retail shops and over the phone.
Online operators like Bet365, Ladbrokes and Sportbet – the Australian arm of UK giant Paddy Power – are lobbying hard for legalization of online in-play betting, arguing that punters will simply make the same wagers with offshore operators that aren’t regulated in Australia. Tatts recently launched a campaign in the exact opposite direction, hoping to preserve its shared monopoly with Tabcorp on in-play wagers.