Australian gaming and racing giant Tabcorp reported an 18.7% increase in revenue for the six months to 31 December 2017 to AU$1.38 billion, bolstered by the recent completion of its merger with Tatts Group.
The “business formerly run by Tatts Group” contributed AU$176.3 million in revenue for the 18 days of working together from 14 December 2017, with Tabcorp Managing Director and CEO David Attenborough noting that, “The diversification benefits that the Tabcorp-Tatts combination brings were highlighted by the six-month financial results of the Tatts Group businesses.
“Tatts’ Lotteries and Gaming businesses delivered strong earnings growth, while the wagering performance reinforces the opportunity we have in successfully integrating our two wagering businesses.”
Tabcorp saw increases across the board, with revenue from its Wagering & media sector up 1.7% to AU$1 billion, Gaming Services up 38.4% to AU$83.3 million and Keno up slightly to AU$112.2 million.
“1H18 was an important half for Tabcorp as we completed the combination with Tatts Group, bringing together two highly complementary businesses,” Attenborough continued. “The combination positions us well to invest, innovate and compete in a rapidly evolving environment.”
Group EBITDA fell slightly by 0.3% to AU$269.6 million, with Tabcorp announcing a dividend of AU$0.11 cents per share.
Looking at the remainder of the financial year, Attenborough said, “Now that the combination with Tatts has been completed, we are focused on delivering the significant value and other benefits that will flow to shareholders, customers and our racing and venue partners.
“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.
“At the same time, we will remain committed to a disciplined approach to operating expenses and capital investment to deliver sustainable returns to our shareholders.”