Tabcorp boosted by 71 per cent revenue increase
Tabcorp has announced a 71.7 per cent increase in its revenue during the 2018 financial year, which it has described as a “company-defining year for Tabcorp”.
The increase saw Tabcorp’s full-year revenue increase from $2.22bn to $3.83bn, while the gaming giant turned last year’s $20.8m loss into a $28.7m profit.
Managing Director and CEO, David Attenborough said: “FY18 was a company-defining year for Tabcorp. The combination with Tatts has created a world-class, diversified gambling entertainment group with an attractive portfolio of market-leading brands across wagering, media, lotteries, Keno and gaming services. The integration of the two businesses is on track, with initial business improvements and cost initiatives implemented.
“We have taken decisions to underpin $50m of EBITDA synergies and business improvements in FY19 and are on target to deliver at least $130m in FY21. We are focused on delivering the substantial value the combination is expected to create for shareholders, customers, the racing industry and venue partners.
“During the year we accelerated digitalisation across the company, launched new products and implemented new licences. The group delivered a positive second half performance and we are well positioned for profitable growth and sustainable returns to shareholders.
“FY18 has also been a year of positive change for the gambling sector. A number of reforms have been introduced which aim to make the industry more sustainable. The introduction of point of consumption taxes, the prohibition of synthetic lottery products, advertising restrictions and improved consumer protection measures are creating a fairer playing field. Tabcorp is very well placed to perform in this improved environment.”
In looking to the year ahead, he added: “Our focus in FY19 is on managing integration, as well as executing sustainable growth initiatives across each of our three businesses. We will continue to invest in the powerful mix of our digital and retail channels, as well as new product initiatives. Tabcorp is well placed to grow by using our channels, brands and people to consistently deliver great customer experiences.
“We remain very focused on unlocking the benefits from the Tabcorp and Tatts combination for our many stakeholders. A key part of bringing the two businesses together involves building a strong and shared organisational culture. We’re making good progress on this priority.
“We will also continue to prioritise the highest standards of regulatory compliance across the Group and maintain a disciplined approach to operating expenditure, capital investment and balance sheet management.”