TABCORP POSTS A $20.8 MILLION FULL-YEAR LOSS
Written on the 4 August 2017 by David Simmons
Although the gambling group generated a total $2.23 billion in revenue, its overall loss comes in stark contrast to its previous $169.7 million profit.
Merger costs and legal bills associated with Tabcorp's entanglement with the ACCC and CrownBet over the Tatts Merger took the heaviest toll.
Despite the loss, Tabcorp Managing Director and CEO David Attenborough says the year was an important one which shaped the future of the company.
"FY17 was a strategically important year for Tabcorp as we reshaped the business for growth," says Attenborough.
"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."
"These are significant initiatives we have undertaken to better position Tabcorp to deliver sustainable growth."
Costs associated with Tabcorp's UK-based business Sun Bets exceeded $46 million in FY17, however the company expects Sun Bets' performance will improve as it matures from its startup phase in FY18.
In the year ahead Tabcorp will continue to work towards its merger with Tatts Group.
Following this morning's announcement, Tabcorp is trading up 0.81 per cent to $4.33.
The company declared a fully franked dividend of 12.5 cents per share, taking the full-year dividend to 25 cents per share.
Author: David Simmons