Stocks to Watch – Tatts Group (TTS)
Tatts Group (TTS) provides gambling services and products. It currently owns a number of business units which operate in the gaming and lotteries division.
TTS has advised that it will book a $140 million write-down related to its UK-based Talarius division, and a further $25 million in the value of its Maxgaming software business.
TTS based its decision on the expected negative impact on UK gaming resulting from the government’s recent tax increase.
The Maxgaming write-down was a result of the information technology applications being replaced early.
Importantly, TTS advised that the write-downs will have no impact on future dividends.
TTS has steadily trended down since May from approximately $2.50 to around $2.23 a share in recent trade and may be one of the shares to sell.