Earlier this week Tattersall’s of Australia released its half year results, the first since its merger with UNiTAb in October 2006. The company says that the integration of the two companies has progressed smoothly and quickly with ongoing margin improvement. UNiTAB businesses have brought Tattersall’s secure licences and a diversified geographical spread of operations, placing the company in a strong position to support licence renewals in Victoria.

The acquisition of Talarius Plc became effective on 1 February 2007 and the AIM-listed gaming operator is now a fully-owned private company. Tattersall’s has a half share in conjunction with Macquarie Bank Limited, which now holds 100% of the equity of Talarius. The joint venture with Macquarie should enable Talarius to further consolidate high street gaming opportunities in the UK and for European Gaming Group to seek expansion in European markets. The European Gaming Group was formed in November 2006 as a joint venture between Tattersall’s Limited and Macquarie Bank, with the initial purpose of acquiring 100% of the issued capital of Talarius Plc.

In South Africa, Tattersall’s has deployed electronic gaming machines at 136 venues in Western Cape. In KwaZulu-Natal the company installed the first EGMs in December but set-up costs are delaying profitability. Uthingo, the South African lottery company in which Tattersall’s holds a 10% interest, was unsuccessful in its bid for a new licence and the licence review process is now the subject of a legal challenge.

One highlight of the six months to 31 December 2006 was a reported net profit after tax up 53.6% on total revenue increase of 24.1%. Merger integration is reported as being ahead of schedule with likely synergies of up to A17 million (US$ million) in 2007 and A$30 million (US$ million) in 2008. Growth in the Group’s operating profits has translated into improved earnings per share (EPS) despite the one-off restructuring expenses incurred in the merger and integration processes. (E-02.23.07)

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