Tabcorp hails progress in ‘strategically important’ year

David Attenborough, chief executive of Tabcorp, has paid tribute to the firm’s performance during the 2017 financial year, describing the 12-month period as “strategically important” for the Australian gambling company.

Group revenue for the full-year came in at Aus$2.3bn (€1.54bn/U$1.83bn), up 1.9% on the Aus$2.19bn achieved on the previous year.

Earnings before interest, tax, depreciation and amortisation (EBITDA), before significant items, dropped 2.3% on a year-on-year basis to Aus$504.1m, while earnings before interest and tax, also before significant items, also dropped by 3.5% to Aus$325.4m.

Net profit after tax before significant items also fell 3.8% from Aus$185.9m in the 2016 financial year to Aus$178.9m in the most recent 12-month period.

Tabcorp also noted that operating expenses at the company were up 7.1% year-on-year to Aus$502.2m, due to the recent acquisition of Intecq and various other planned investments.

“FY17 was a strategically important year for Tabcorp as we reshaped the business for growth,” Attenborough said.

“We made investments in acquiring Intecq, establishing Sun Bets and progressing the combination with Tatts, which we expect to complete by the end of the year.

“We also strengthened Tabcorp’s risk management and regulatory compliance capability, which is scalable in the context of the proposed combination with Tatts; these are significant initiatives we have undertaken to better position Tabcorp to deliver sustainable growth.

“At the same time, we accelerated our digital investment in our Wagering and Media and Keno businesses, while Gaming Services continued to expand geographically.

“The increase in operating expenses was driven by the acquisition of Intecq and planned investments in capability, technology, marketing, risk and compliance.

“We expect our investment in these areas to reduce the risk associated with the Tatts integration.”

Tabcorp also used the results posting to announce that it expects to complete its merger with rival Tatts Group before the end of the current year.

First announced in October of last year, Tabcorp and Tatts have agreed to merge and create a combined business worth Aus$11.3bn.

However, the deal has drawn criticism from some quarters over concerns related to competition and the Australian Competition and Consumer Commission last month applied to the Federal Court for a ‘justice review’ of a decision to approve the merger, having had a previous case turned down.

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