Tabcorp profits hit by legal costs and Sun Bets investment
Australian gaming operator Tabcorp registered a 49% drop in profits to Aus$169.7 million (€115.6 million/$128.7 million) during the year to June 30.
In its annual results, the company – which this week launched its UK joint venture, SunBets – said that underlying profit was up 9% to Aus$185.9 million, while revenue rose by 1.5% to Aus$2.2 billion.
Tabcorp noted that its results were impacted by legal costs of $13.6 million relating to allegations of non-compliance of anti-money laundering rules, while the previous reporting period included a one-off tax benefit of Aus$163.2 million.
The statement was also affected by $14.4 million spent on establishing Sun Bets in association with News UK’s newspaper, the Sun.
The company highlighted digital growth of 15% in the second half of the financial year as a reason for optimism.
“We enhanced our strategic position and delivered improved financial performance in FY16, resulting in a 20% lift in dividend per share,” said Tabcorp managing director and CEO, David Attenborough.
“Our investment was focused on strengthening our businesses and positioning for future growth, while also delivering strong growth in shareholder returns. Over the past three years we have increased the ordinary dividend from 16 cents to 24 cents per share on an expanded capital base.
“Recent initiatives such as the proposed acquisition of INTECQ and the launch of Sun Bets further strengthen and diversify our operations. Sun Bets is an exciting opportunity for Tabcorp to take its market-leading wagering capabilities into the Aus$7 billion UK online gambling market.
“Our Wagering and Media business grew in FY16, benefiting from TAB’s multi-channel distribution model and the integration with the Sky media business. Momentum improved across the year, with trends in the second half stronger than the first half.”
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