MOMENTS THAT
THRILL!TATTS GROUP LIMITED
FY17 INVESTOR PRESENTATION
ABN 19 108 686 040
Results OverviewPROFIT PERFORMANCE
-
STRONG FINANCIAL PERFORMANCE
à Statutory NPAT $220.5m 5.7%, carrying:
$23.4m in merger costs (net of tax)
$137.8m revenue 'hit' from fewer jackpots at or above $15m (FY17: 31 vs FY16: 45)
the brunt of bad weather + reduced field sizes
à Continuing operations NPAT 7.7% to $244.6m (normalised for merger costs)
-
DIVIDEND MAINTAINED
NPAT from continuing operations
Merger costs (net of tax)
FY17 ($M)
Discontinued operations
244.6
(23.4)
(0.7)
NPAT from coSnitginnuifiincganotpieteramtsions
Merger costs (net of tax)
FY16 ($M)
Discontinued operations
Statutory NPAT
233.8
264.9
(1.5)
(29.6)
à Strong operational cashflows supporting dividend
à Final dividend 8.0¢ per share (FY16: 8.0¢)
à Full-year dividend 17.5¢ per share maintained
Statutory NPAT220.5
0 50 100 150 200 250 300
0 50 100 150 200 250 300
à 105.4% payout ratio (statutory before merger costs)
-
DIGITAL SALES CONTINUE TO POWER AHEAD
LOTTERIES JACKPOT RUN
48
à Wagering: 31.7% of turnover - from 30.2% in FY16
à Lotteries: 14.5%1of sales - from 13.5% in FY16
à Lotteries 'the Lott' apps on 2.0m devices (FY16: 1.3m devices)
à Wagering UBET apps on 0.4m devices (FY16: 0.2m devices)
44
40
39
36
36
32
$29.0M
28
45
34
$28.8M 31
-
LICENCE RENEWAL
à Renewal of exclusive licence to conduct lotteries in Victoria:
10-year term starting 1 July 2018
$120m one-off payment at licence commencement date
$25.7M $25.3M
24
20
16
$24.2M
12
8
6
4
0 6 4 4 6 2
FY13
FY14 FY15 FY16 FY17
Number of jackpots at $15M or more
Average value of jackpot pool at $15M or more
Number of jackpots at $50M or more
1 Consistent with prior years this excludes South Australia, if South Australia is included, online sales represented 13.7% vs 12.7% in FY16
Tatts Group FY17 Results Presentation | 2
Results Overview (cont.)Group revenue 5.1%
Group EBIT 8.1% before merger costs
LOTTERIES FINANCIAL PERFORMANCE
Revenue
FY17
FY16
CHANGE
($M)
($M)
(%)
2,014.0
2,139.5
q 5.9%
EBITDA
315.6
345.5
q 8.7%
EBIT
290.5
320.0
q 9.2%
WAGERING FINANCIAL PERFORMANCE
Turnover
Net Win Rate Revenue EBITDA
EBIT
EBIT
NPAT (Continuing) 7.7% before merger costs
NPAT (Statutory) 5.7%
FY17 ($M)
FY16 ($M)
CHANGE (%)
2,778.5
2,928.1
q
5.1%
(1,290.7)
(1,370.9)
q
5.8%
(407.3)
(436.7)
q
6.7%
(199.3)
(202.7)
q
1.7%
(415.5)
(420.9)
q
1.3%
(2,312.8)
(2,431.2)
q
4.9%
465.7
496.9
q
6.3%
(78.2)
(75.2)
p
4.0%
387.5
421.7
q
8.1%
(46.4)
(41.1)
p
12.9%
341.1
380.6
q
10.4%
(96.5)
(115.7)
q
16.6%
244.6
264.9
q
7.7%
(23.4)
(1.5)
p
1,470.8%
(0.7)
(29.6)
q
97.6%
220.5
233.8
q
5.7%
Cost control - expenses 4.9% before merger costs
Government share Venue share/commission
Product and program fees
Other expenses Total expenses EBITDA
Depreciation and amortisation
EBITNet interest expense Profit before taxIncome tax
Net profit after tax (continuing operations before merger costs)Merger costs (net of tax)
Loss from discontinued operations1
Net profit after tax (statutory)66%
14%
20%
Gaming 14%
Wagering 20%
Lotteries 66%
FY17 ($M) 3,841.9 | FY16 ($M) 4,125.1 | CHANGE (%) q 6.9% | |
15.3% | 14.8% | p | 50 bps |
587.5 | 609.9 | q | 3.7% |
110.4 | 133.3 | q | 17.1% |
90.3 | 115.7 | q | 22.0% |
Revenue | FY17 | FY16 | CHANGE |
($M) | ($M) | (%) | |
- MAX | 120.7 | 118.4 | p 2.0% |
- MAXtech | 81.8 | 92.3 | q 11.3% |
EBITDA | 67.7 | 64.7 | p 4.6% |
- MAX | |||
- MAXtech | 7.7 | 3.4 | p 125.6% |
EBIT | 55.0 | 52.4 | p 5.0% |
- MAX | |||
- MAXtech | 5.5 | 1.0 | p 444.9% |
GAMING FINANCIAL PERFORMANCE
1 The loss from discontinued operations in FY17 represents estimated final costs associated with the pokies compensation case. In FY16, the loss represents the loss on sale from Talarius + the legal costs associated with the pokies compensation case
Tatts Group FY17 Results Presentation | 3
Dividends-
STRONG SHAREHOLDER RETURN
à Strong operational cashflows supports dividend
à Final fully franked dividend:
§ 8.0¢ per share (FY16: 8.0¢)
Record date 4 September 2017
Payment date 3 October 2017
DRP suspended in accordance with merger terms
à Total dividend for FY17:
§ 17.5¢ per share (FY16: 17.5¢)
105.1% payout ratio on continuing operations basis (before merger costs)
105.4% payout ratio on a statutory basis (before merger costs)
à Total Shareholder Return (TSR):
Tatts TSR 16.5%
§ ASX200 TSR 15.7%
FINAL DIVIDEND
FY17 - 8.0¢DIVIDENDS PER SHARE AND PAYOUT RATIO (CONTINUING OPERATIONS BEFORE MERGER COSTS)
Payout %
95.1%
84.8%
93.7%
97.3%
105.1%
12.0cps
11.0cps
10.0cps
H1 9.5c
9.0cps
8.0cps
H2 7.5c
7.0cps
6.0cps 5.0cps
4.0cps
3.0cps 2.0cps
1.0cps
0 cps
H1 8.0c
H2 7.5c
H1 8.0c
H2 5.5c
H1 9.0c
H2 8.0c
H1 9.5c
H2 8.0c
FY13 FY14 FY15
FY16
FY17
Tatts Group FY17 Results Presentation | 4
Tatts Group Limited published this content on 17 August 2017 and is solely responsible for the information contained herein.
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