Tabcorp posts strong 19H1 following Tatts integration

Tabcorp’s combination with Tatts Group has continued to provide strong financial results for the group, with profit, revenue, and EBITDA from continuing operations recording significant increases in FY19H1.

Statutory net profit after tax (NPAT) increased more than six-fold to A$182.5 in the first half of the 2019 financial year, while revenue increased by 108.3 percent year-on-year to A$2.8 billion.

Compared to pro-forma results from 18H1, revenue increased 6.1 percent year-on-year in 19H1, while EBITDA was up 9 percent.

Tabcorp Managing Director and CEO, David Attenborough said that the company’s integration with Tatts Group has been progressing well, leading to an upgrade of their synergy targets.

“We delivered $24 million of EBITDA from synergies and business improvements in 1H19 and are set to deliver $55 million in FY19, up from our previous target of $50 million.”

“The performance of Lotteries was the standout in 1H19. The strong performance was driven by digital growth and game innovation, including bigger and more frequent Powerball jackpots.

Lotteries revenue increased 19.6 percent vs pro-forma pcp, reaching A$1.3 billion.

Wagering & Media revenues fell 3.8 percent vs pro-forma pcp.

Tabcorp said the revenue decline from the wagering arm was caused by a significant increase in generosities and lower fixed odds yields.

The company’s Gaming Services arm posted revenue of A$155.8 million, down 4 percent vs pro-forma pcp.

This was due to a decline in revenue from its Regulatory Services (monitoring and related services) and Venue Services (TGS, gaming systems and support services), due to the expiry of some venue contracts.

Looking ahead, Attenborough said the commencement of point of consumption taxes, and the prohibition of synthetic lottery products will allow Tabcorp to be well positioned for the year ahead.