Publishing its 2017/18 (period ending 30 June) annual results, a new look Tabcorp Holdings demonstrates its enlarged capacity, recovering from its 2016/17 woes.
The ASX-listed gambling group points towards a new direction as it incorporates the lottery and betting assets of Tatts Group, forming Australia’s biggest gambling enterprise (deal concluded December 2017).
A significantly enlarged Tabcorp records 2017/18 group revenues of AUS $3.8 billion up 71% on corresponding 2016/17’s AUS $2.2 billion.
At present, Tabcorp’s enlarged enterprise sees the company operate eight core brands within the Australian: TAB, UBet, Keno, The Lott, TGS, Sky Racing, MAX and Ebet.
Following a turbulent 2016/17 period, Tabcorp doubles its corporate EBIT to AUS $241 million (2016/17: $101 million). With the betting group further reversing its net profits to AUS $29 million (2016/17: – AUS $20 million).
Despite its 2017/18 profit recovery, Tabcorp earnings would be delivered below corporate expectations as the ASX enterprise incurred substantial costs attached to the closure of Sun Bets joint-venture with News UK.
During the period, Tabcorp governance would move ahead with terminating the Sun Bets enterprise, absorbing total costs of approximately AUS $91 million, with circa $38 million booked-in its 2017/18 accounts.
David Attenborough, Tabcorp Managing Director and Chief Executive Officer, commented on performance:
“The 2018 financial year was company-defining for Tabcorp. The combination with Tatts Group has brought together two highly complementary organisations creating a leading, diversified portfolio of gambling entertainment businesses.
“Since completing the transaction in December 2017, we have prioritised the integration of the two businesses. We have made good progress, including establishing new leadership teams across the Group and setting the foundations for a strong and aligned organisational culture.
“Initial business improvements and synergies were delivered at the back end of 2H18 and we are on track to achieve our target of at least $130 million of annualised EBITDA benefits in FY21.”