Economy

Tatts Group records profit decline thanks to exit from Victorian pokies; Fairfax reduces full-year loss: Midday Roundup

Yolanda Redrup /

Gaming company Tatts Group’s full-year net profits have dived by 22.5%, following the closure of its Victorian pokies business.

The company’s full-year results, released this morning, show profits slipped by $71.8 million year-on-year, from $319.1 million to $247.3 million.

Despite the loss it seems Australians still love gambling, with Tatts’ full-year net profit for its continuing operations lifting 40.8% to $227.4 million.

The group’s revenue for continuing operations also jumped 11% to $2.95 billion.

Tatts also reported a record lotteries revenue of $2.01 billion, up 13.6%. Online lottery sales also skyrocketed 35.2% and wagering revenue climbed 5.2% to $655.7 million.

Fairfax reduces full-year loss

Media giant Fairfax has reported a net loss of $16.4 million for the current year, saying the company’s reinvention program has managed to deliver $311 million in savings by 2015.

In the year to June 30, Fairfax posted a loss of just $16.4 million, down from the massive $2.73 billion recorded during the previous year.

Excluding significant items, the company recorded a profit of $143 million, down 37% from the previous year.

“We’re responding to difficult conditions by transforming our operations, evolving the way we engage with customers and audiences, and developing a range of new revenue opportunities adjacent to our core business,” chief executive Greg Hywood says in a statement.

The result was impacted by a writedown of the company’s printing, regional and agricultural businesses, worth $400 million.

Shares fall on open

Australian shares have opened lower this morning, reacting to minutes from the United States Federal Reserve’s last meeting.

The minutes showed members of the Reserve felt it might soon be time to start stimulus tapering.

The S&P/ASX200 benchmark was down 30 points to 5070 just before midday.

Overnight the Dow Jones closed 105.44 points lower, down 0.70% to 14,897.55.

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