What Happened to the Tatts Group Share Price?
Tatts Group Limited [ASX:TTS] is a network of gambling business and entertainment leisure products that operates in Australia and the United Kingdom. The company offers lotteries, betting services and gambling machines like pokies.
Tatts closed up 2.88% on Friday.
Why Did This Happen to TTS Shares?
Tatts Group had legal proceedings against the State of Victoria in the Supreme Court. Tatts was seeking compensation for the expiry of its gaming license on 15 August 2012. Tatts believe they are owed $451 million. The Supreme Court decided in favour of Tatts and that the State of Victoria is liable and will have to pay Tatts this amount, plus interest, which is estimated to be $89.1 million.
What Now For Tatts Group Limited?
Tatts Group has been trending down for the past eighteen months. The share price has fallen from $3.30 in February 2012 to a low of $2.91 in March this year. Revenue for last financial year dropped nearly 24% to $2,940 million. Net profit declined 22% to $247 million.
The court win saw the stock price climb from $3.02 to $3.28 in one day. Expect some profit taking in the days to come. Solid 2014 financial data will likely see the stock price hover around $3.10 for the medium term.
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Shae Smith+
Editor, Money Weekend
