Tattersall's beats its forecast

SYDNEY - Tattersall's says full-year earnings have risen 1.5 per cent above a forecast in its listing prospectus, buoyed by its lotteries division, and it is on track to reach 2006 targets.

Australia's second-largest wagering group, which listed on the Australian stock exchange on July 7 in the biggest new offering this year, also said it was assessing a number of lottery and gaming opportunities in the country and overseas.

"We intend to leverage our domestic and international experience to realise our vision of becoming a leading international provider of gaming-based entertainment," Tattersall's chief executive Duncan Fischer said.

Analysts say casino operator Sky City is a potential takeover target for the company. Sky shares rose 3c in New Zealand to $4.95 yesterday.

Melbourne-based Tattersall's said normalised annual earnings before interest, tax, depreciation and amortisation (ebitda) was A$247.6 million ($270m), up from a forecast $A244 million.

The company said net profit was A$13.03 million. This covers just the month of June as Tattersall's acquired the business and assets from the estate of its founder, the late George Adams, on May 31.

As a result there is no comparable profit figure.

Tattersall's said total revenue was A$2.4 billion, 0.5 per cent above the prospectus forecast, with gaming revenues - which have been hit by the introduction of smoking bans - coming in at A$1.2 billion, 0.2 per cent above forecasts, and lotteries revenue of A$1.2 billion, 0.8 per cent above forecasts.

Tattersall's in June forecast ebitda in fiscal 2006 to fall to A$228.8 million on cost increases, including an increase in gaming machine levies in southern Victoria.

The state Government has nearly doubled the so-called health benefit levy to A$3033 from A$1533 per gaming machine in Victoria, where Tattersall's claims a 50 per cent market share.

The Government is also weighing gaming and wagering licence renewals for Tattersall's and rivals Tabcorp Holdings and tycoon Kerry Packer's Publishing Broadcasting, which are due to expire in 2012. A decision is due in 2007.

Tattersall's said it expected to be a front runner for a new Victorian lottery licence. That licence is expected to be awarded next year.

Tattersall's also operates gaming machines and the national lotteries in South Africa and has a 10 per cent shareholding in the Swedish lottery system operator EssNet.

Tattersall's shares rose 1.2 per cent yesterday to A$3.27 - nearly 13 per cent above the A$2.90 retail issue price.

- REUTERS