Tabcorp reveals revenue growth in first half

Tabcorp has reported an 18.7% year-on-year increase in revenue for the first half of the year, during which it completed its merger with Tatts Group.

Revenue for the six months through to December 31, 2017, came in at A$1.38bn (€878m/US$1.08bn), compared to A$1.12bn in the corresponding period in the previous year.

Earnings before interest, tax, depreciation and amortisation, before significant items, remained relatively level at A$269.6m, while earnings before tax, before significant items, dropped 7.6% to A$169.8m

In addition, statutory net profit after tax (NPAT) dropped 58.2% year-on-year to A$24.6m, while NPAT before significant items fell 20.2% to A$82m.

Tabcorp cited costs related to the acquisition of Tatts Group, which went through in mid-December, as the main reason behind a drop in profit in the period.

David Attenborough, chief executive of Tabcorp, said: “H18 was an important half for Tabcorp as we completed the combination with Tatts Group, bringing together two highly complementary businesses.

“The combination positions us well to invest, innovate and compete in a rapidly evolving environment.

“The 1H18 financial result reflects a period of reshaping the Tabcorp business for sustainable growth; this includes implementing the combination with Tatts, exiting Luxbet and Odyssey Gaming Services, and our ongoing investments in areas such as our digital capability, customer acquisition and the risk management and compliance framework.

“We have reshaped the business and have created a strong platform for sustainable growth, with a clear set of priorities to drive growth across each of our businesses.

“Our focus on ensuring the highest levels of regulatory compliance will continue as we deliver on this agenda.”

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