Home' The Channel Magazine : N-view 2016 Contents Tatts Lotteries performance
Sue van der Merwe, Chief Operating Officer Lotteries
(Australia) outlines Tatts’ year:
Revenue for FY15 was up an impressive 2.8 per cent to $1.98
billion across the portfolio of games, demonstrating the value
of our diverse lotteries product range. Overall growth was
achieved notwithstanding two fewer jackpots in FY15 at the
$15 million or more mark when compared to the prior year
(34 vs 36 jackpots) and a lower average value jackpot pool at
$25.3 million (FY14: $25.7 million). This revenue growth was
underwritten by strong performance from the base games
of the lottery game portfolio with excellent contribution from
our largest game, Saturday Lotto, stable performance in our
Monday/Wednesday game, and continued growth in our
expanded Instant Scratch-Its portfolio. The well-established
New South Wales and ACT game, Lucky Lotteries, was also
able to find new avenues for growth by extending its footprint
on 30 March 2015 into Queensland, Victoria, Northern
Territory and Tasmania.
Instant Scratch-Its revenue increased by an impressive 7
per cent. This performance was assisted by innovation in
the product portfolio and the return of Instant Scratch-Its to
our game portfolio in Victoria. The Victorian Government
approved a variation to our public lotteries licence on 27
October 2014, expanding our authorised product offering to
include Instant Scratch-Its and daily Keno.
Our retail network is and will remain our largest source of
sales, generating 88.9 per cent of overall sales. We will
continue to invest in supporting our retailers and driving
growth in this important channel through initiatives such as
local area marketing, in-store promotions, business planning
and retailer incentives.
I’d like to thank our retailers for their ongoing support
and assure them of our commitment to continue to
work collaboratively with our extensive network of small
businesses to achieve continued success into the future.
Lotterywest’s Pina Compagnone said has been a record-
breaking year at Lotterywest with sales reaching $826.3
million (2014/15), an increase of 3.7% from last financial year.
Support to the Western Australian community through our
statutory allocation and Direct Grants reached $282.9
million. Part of this community support included $130.8
million in direct Lotterywest Grants given to 949 community
organisations across WA.
Lotterywest CEO Paul Andrew said key highlights from across
the year included the launch of a brand new national game
called Set for Life.
The annuity style game offers a 1st Prize of $20,000 a month
for 20 years. The goal for Set for Life was to capture a new
generation of players. It was the first lottery game launched in
Australia in 20 years and the first game to be drawn daily. WA
was even lucky enough to get its very first 1st Prize winner
only two months after the game was launched.
As part of building on our sales channels, another highlight of
the year was the launch of the Lotterywest App.
“Our research confirmed that mobile use for playing
Lotterywest Games was on the rise. The positive feedback
and take up of the App has confirmed this is a service our
players are seeking,” Mr Andrew said.
He said that looking ahead; a strong focus for Lotterywest
is building on our significant brand position, ensuring we
operate our business efficiently and growing sales of our
lottery products in a responsible way.
“One area of focus is our distribution strategy. Our aim is to
continue to manage our current retail network for optimum
performance and to grow our digital channel and presence to
meet our customers’ expectations.”
Lotterywest has also commenced research into future retail
opportunities to responsibly grow sales and attract new
“We need to consider changes to our retail environment,
customer expectations and technology so that our business
remains relevant in the future. This research will also provide
us with relevant information about our existing network and
help to optimise the performance of individual retailers and
support a more customised retail management approach.”
A key initiative that Lotterywest has been working on over
the past year and continues into the coming year is a retail
transformation. It includes rolling out a new retail design
and lottery technology set to modernise the way
Lotterywest Games are played in retail stores across WA. It
aims to improve the in-store player experience and offer new
ways to play.
Mr Andrew said the transformation was a vital step in
continuing to operate a successful lottery business
into the future which raises much needed funds for the WA
“It’s about engaging with our existing players, but just as
importantly, attracting new players to play our games. We
need to respond to significant changes occurring in the retail
environment and the ever changing purchasing behaviour of
our players,” he said.
“This is an exciting time for Lotterywest and our retail
network as we work together to grow our business in
partnership.” he said.
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