SBC News Voice of the Sports Betting Industry
Footing a legal bill of AUS $20 million (£11.5 million) Australian ASX-listed gambling operator Tabcorp Holdings (Tabcorp) has witnessed its full-year 2016 net profits decline 49% to AUS $169 million (FY 2015: AUS $334 million).
Presenting its FY 2016 results (financial period ending 30 June), Tabcorp governance stated that 2016 business conditions had been ‘Volatile.’ The gambling operator would report that it had spent AUS $20 million to date on its ongoing legal battle against anti-money laundering charges made by the Australian Transaction Reports and Analysis Centre (AUSTRAC).
Tabcorp governance maintained that FY 2016, would be a tougher period for its business as the company had benefited in 2015 of AUS $163 million (£93 million) Victorian Gaming and Wagering tax rebate, significantly boosting its earnings performance.
Detailing further expenditures, Tabcorp would specify that it had spent approximately AUS $14.4 million (£8.2 million) on setting up its UK ‘Sun Bets’ joint-venture with media owner News UK. Tabcorp stated that the high costs incurred from ‘Sun Bets’ were integral to breaking the highly saturated UK online betting market.
Despite facing mounting costs, Tabcorp governance was pleased that the company had maintained its group revenues of AUS $2.2 billion, amid increasing market competition from foreign operators.
Having closed a tough 2016, Tabcorp governance stated that the company had undertaken necessary strategic changes to achieve its 2017 core targets which include expanding internationally, improving its digital consumer offering while maintaining its market leader position within the Australian gambling sector.
Releasing a joint statement Tabcorp Chairwoman Paula Dwyer and CEO David Attenborough would comment on 2016 performance
“We remain focussed on future performance and generating attractive returns from the businesses we operate. Our target is to achieve 14% Return on Invested Capital in the 2017 financial year. We will continue to invest in growth initiatives that can differentiate our businesses and create value for shareholders.”
“Our aim is to create outstanding customer experiences through best-in-class product and technology and to earn the reputation as the most respected gambling company in the world.”
