Click here to access the latest research on the performance of Tatts Grup by the respected Credit Suisse group. The core lotteries information is:
Lotteries: exceeded previous TTS guidance, issued mid-December with a slightly better run-of-jackpots as TTS closed the period. Overall, the business was managed well, against some very bad-luck and the lowest jackpot run in about five years. The outlook appears more favourable and challenging comps should diminish as 2H17 progresses. We expect 8% EBIT growth in FY18, restoring lottery earnings above the previous FY16 base.
2017 will be an interesting year for Tatts and its retailers in this space with tough than ever competition from competitors. This is especially true for the online / mobile competitors.
Newsagents are especially at risk from the latest moves as their lottery revenue depends on over the counter whereas tatts and OzLotteries are established online.
These are reasons newsagents need to think carefully before making any capital investment supporting lotteries sales.