Australia ASX-listed gambling group Tabcorp Holdings Plc, has upgraded its corporate integration and synergy targets, as governance aims to display the firm’s enlarged capacity across all product verticals and services.
Publishing its interim 2018/19 results (period ending 31 December 2018), a significantly enlarged Tabcorp records group revenues of AUS $2.7 billion, primarily attributed to incorporating Tatts Group keno and lottery assets.
The asset enlargement sees Tabcorp report top-line growth across all core reporting metrics, as the ASX operator declares interim EBITDA of AUS $553 million.
Updating investors, Tabcorp details strong progress on its enlarged integration targets, with the company moving to increase cost-synergies to AUS $95 million, combined with delivering an improved EBITDA cost savings target of AUS $130-145 million by full-year 2021.
Updating investors, Tabcorp Managing Director and CEO, David Attenborough states. “The integration program is progressing well, and we have upgraded our 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.”
Vital to its strategy, a new Tabcorp executive management team is investing and executing on delivering a group-wide digitization programme, boosting the capacity of Tabcorp’s expanded product portfolio.
Whilst, Tatts’ keno and lottery divisions maintain solid growth for Tabcorp, Australian business analysts will be monitoring Tabcorp’s TAB wagering property performance closely.
During the interim period, Tabcorp governance implemented a restructuring of its group betting properties, consolidating all brands under the TAB domain as the group’s lead sportsbook proposition for retail and digital disciplines.
Transition costs would see Tabcorp’s TAB division deliver a lacklustre performance with revenues stagnated at AUS $1.2 billion and a 4% EBIT decline to AUS $159 million.
“TAB’s active customer numbers and turnover grew in a market in which there was a significant increase in customer generosities. UBET will be a different business in FY21 and has commenced its transition to the full TAB offering” Chief Executive, David Attenborough further details.
Closing interim trading, Attenborough informs that Tabcorp governance will ‘revive the Tab’, by moving to install a new player management system, analytics tools, retail geolocation targeting and a new tote wagering product.