Tabcorp looks at the ‘bigger picture’ following transitional 2017/18

Tabcorp looks at the ‘bigger picture’ following transitional 2017/18

Thursday, August 9, 2018 Posted by Luke Massey
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The company wants to move on from its costly Sun Bets failure

Despite not being able to deliver on its 2017/18 corporate expectations, Tabcorp Holdings remains upbeat having completed a transitional year for its business.

Publishing its full-year 2017/18 accounts (12-month period ending 30 June), Tabcorp reports group revenues of AUS $3.8 billion up 71% on corresponding 2016/17’s AUS $2.2 billion.

The ASX-listed enterprise points to a new start as an enlarged gambling group, securing new lottery, keno and betting assets following the completion of its AUS $11 billion merger with Tatts Group.   

The gambling group’s enlarged capacity sees Tabcorp more than double its EBIT to AUS $241 million (2016/17: $101 million), with the company reversing operating losses of AUS $20 million in 2016 to post profits of AUS $29 million this time around.

David Attenborough, Tabcorp Managing Director and Chief Executive Officer, said: “The 2018 financial year was company-defining for Tabcorp. The combination with Tatts Group has brought together two highly complementary organisations creating a leading, diversified portfolio of gambling entertainment businesses.

“Since completing the transaction in December 2017, we have prioritised the integration of the two businesses. We have made good progress, including establishing new leadership teams across the Group and setting the foundations for a strong and aligned organisational culture.”

Despite progress on its corporate agenda, Tabcorp trading was significantly disrupted by the termination of its Sun Bets joint venture with News UK, which has the cost the company approximately AUS $91 million.

Totally Gaming says: Tabcorp achieved its core 2017/18 target by forming Australia’s biggest gambling group. However, the enlarged group still couldn't escape the reality of the country’s hardened gambling market (including new taxes, advertising restrictions and more digital competitors). For this reason, Tabcorp is right to keep pursuing international interests, despite its well-documented Sun Bets setback.

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