Tabcorp profit falls 58 pct over significant items

Australian gambling operator Tabcorp Holdings on Thursday said its statutory net profit fell more than 50 percent in the first half of the 2018 financial year.

Tabcorp said NPAT and EPS were adversely impacted by significant items after tax of A$57.4 million (US$44.9 million), which comprised of Tatts Group acquisition related costs, Sun Bets onerous contract provision, Sun Bets impairment, Luxbet closure costs, loss on Odyssey divestment, all of which was partially offset by the net gain on the Tatts cash-settled equity swap.

Revenues reached $1.4 billion in the interim period, up 18.7 percent year-on-year.

The company completed its landmark merger with lottery giant Tatts Group late last year. 

The company also saw its TAB business report 3.1 percent turnover growth driven by an uplift in digital turnover and strong customer acquisition.

Its Gaming Services division brought in double-digit earnings growth, while KENO turnover growth reached 3.5 percent in the FY18Q2, with momentum building in digital sales.

“18H1 was an important half for Tabcorp as we completed the combination with Tatts Group, bringing together two highly complementary businesses. The combination positions us well to invest, innovate and compete in a rapidly evolving environment,” said Tabcorp managing director and CEO, David Attenborough.

“The 18H1 financial result reflects a period of reshaping the Tabcorp business for sustainable growth. This includes implementing the combination with Tatts, exiting Luxbet and Odyssey Gaming Services, and our ongoing investments in areas such as our digital capability, customer acquisition and the risk management and compliance framework,” he said.

A dividend of 11 cents per share has been announced for the interim period.