Entering a new financial year, Australia ASX-listed gambling group Tabcorp Holdings has detailed a solid opening for its 2018 operating guidance, publishing its opening quarter trading statement (period ending 30 September).
Although no longer required to provide quarterly trading statements, due to its ongoing merger with Tatts Group, Tabcorp governance has proceeded to update its investors and stakeholders.
Tabcorp would detail a 5.7% increase in group revenues to AUS $578 million, primarily driven by its ‘Wagering & Media’ division which recorded increased revenues of AUS $481 million (Q1 2017: AUS $461 million).
Publishing its trading update, Tabcorp governance has chosen not to disclose any information relating to the firm’s earnings and profit performance.
From a UK perspective, Tabcorp detailed that its Sun Bets division had recorded poor period operating revenues of AUS $1.1 million, which was deemed to be ‘below expectations’. Tabcorp governance has further detailed that Sun Bets operations are currently ‘under review’.
Pursuing its merger with Tatts, Tabcorp has placed a number of business assets under strategic review. In its trading update, Tabcorp governance detailed that it would make a final decision on the future of its Luxbet brand within the coming weeks.
Hosting a Q1 trading call, Tabcorp Holdings Chairman Paula Dwyer would update investors on the firm’s drawn-out merger with Tatts Group, stating that the Australian Competition Tribunal (ACT) had this week finished its reprimanded review of Tabcorp-Tatts combination, taking on-board the considerations of the Australian Competition and Consumer Commission (ACCC) and market rival CrownBet.
Dwyer conceded that the prolonged merger was accumulating costs for Tabcorp operations, but assured investors’ that the company board is prepared for any potential ruling with regards to the Tabcorp-Tatts combination.