Tabcorp swings to loss on fines, merger costs

Australian wagering giant, Tabcorp swung to a loss of A$20.8 million ($16.5 million) in the year ending June 30, hurt by the costs of its merger with rival Tatts and legal costs.

The group had $199.7 million of one-off items, including $61.8 million in fines and legal costs after regulator Austrac ruled the company had not complied with Anti Money Laundering rules and $1.9 million costs over a probe into a deal in Cambodia. Costs related to the Tatts combination were $53.9 million.

Revenues gained 1.9 percent to $2.22 billion, in line with the company’s guidance.

"FY17 was a strategically important year for Tabcorp as we reshaped the business for growth. We made investments in acquiring Intecq, establishing Sun Bets and progressing the combination with Tatts, which we expect to complete by the end of the year,” Tabcorp Managing Director and CEO, David Attenborough, said. “We also strengthened Tabcorp’s risk management and regulatory compliance capability, which is scalable in the context of the proposed combination with Tatts.”

“These are significant initiatives we have undertaken to better position Tabcorp to deliver sustainable growth.”

Revenue from wagering and media was flat, while revenue from the gaming services division was up 34.2 percent. Keno revenue gained 2 percent. Media revenues grew 1.9 percent and all key racing broadcast rights were secured for continued broadcast on Sky Racing.

More news from this jurisdiction

AustraliaFriday, Aug 18, 2017

The Star Casino will be allowed to give credit to international high-rollers in the same way as Crown will under the government’s proposed new set of casino regulations.

AustraliaThursday, Aug 17, 2017

The Australasian Gaming Expo’s return to where it started 28 years ago at Darling Harbour, has been an outstanding success.

AustraliaWednesday, Aug 16, 2017

A ticket-in, ticket-out system could be introduced to slot machines in clubs in Victoria, sparking an uproar from anti-gambling groups.

AustraliaWednesday, Aug 16, 2017

Over 3,000 key industry executives from the Gaming and Hospitality Industry gathered for the first day of the 28th Australasian Gaming Expo at the ICC Sydney at Darling Harbour.

AustraliaTuesday, Aug 15, 2017

Australia-listed Donaco International, which operates casinos in Vietnam and Cambodia, says it has signed an accord with Mega International to refinance a loan facility with Mega Bank.

AustraliaTuesday, Aug 15, 2017

PokerStars will leave the Australian market in September after the Senate passed a bill earlier this month that bans all remote operators from offering online poker and in-play sports betting to Australian clients.

AustraliaThursday, Aug 10, 2017

AGS invites casino operators from around the country to experience some of its top-performing table game products, which the company plans to begin widely offering in Australia.