Peter Quinton's key points underlying his Buy rating on Tatts Group Limited (TTS) are as follows: The FY14 result was confusing but on a like-for-like basis...

Peter Quinton's key points underlying his Buy rating on Tatts Group Limited (TTS) are as follows: The FY14 result was confusing but on a like-for-like basis the net profit was up 7.3% to $226.6m versus the reported decline of less than 1%; Lotteries EBIT up only 0.8% to $271.5m but this is a very good outcome given that FY13 was buoyed by exceptional jackpots; Wagering EBIT down 7.4% to $144.1m reflecting significant competition from out-of-state operators and a softer retail environment but FY15 will see the launch of a much improved website and the nexgen sports betting platform; Fiscal 15 is off to a good start and the balance sheet is very strong with ND/SF of only 27% & an interest cover (EBIT) of 4.7x.; If the Pokies compensation is retained, the company will consider a special fully franked dividend and/or a share buyback.