A ‘strategically important year’ for Tabcorp
Tabcorp has posted a $20.8m loss for the 2017 financial year, with the company highlighting costs relating to its on-going takeover of the Tatts Group as well as the acquisition of Intecq and setting up of Sun Bets in the UK as reasons behind the loss.
The result is a big change from the $169.7m profit the company reported last year, but Tabcorp did see its revenue for 2017 increase slightly by two per cent, to $2.23bn.
“FY17 was a strategically important year for Tabcorp as we reshaped the business for growth. 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,” Tabcorp Managing Director and CEO, David Attenborough, said.
“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’s wagering and media revenues for $1.8bn, which was in line with FY16, with total TAB turnover growth of 1.9 per cent, which was underpinned by digital turnover growth of 13.9 per cent. Gaming Services revenues, which include seven months of Intecq trading, were $143.9m in FY17, up 34.2 per cent. Keno revenues were also up, rising to $212.7m, an increase of two per cent on the previous year.
In speaking about the year ahead, Attenborough added: “Our plan for FY18 centres on completing the combination with Tatts. At the same time, we have a clear set of priorities to drive performance in our core businesses and benefit from the strategic initiatives we delivered in FY17. We will continue to focus on maintaining a disciplined approach to operating expenses and capital expenditure and delivering sustainable returns for our shareholders and partners.”