Scientific Game

Early signs positive for Tabcorp as Tatts merger spurs FY18 growth

Wednesday, 08 August 2018 14:22
Share
Visit us

The December 2017 merger between Australian gaming giants Tabcorp Holdings and Tatts Group saw Tabcorp’s revenue for the year ended 30 June 2018 climb 71.7% to AU$3.8 billion in what Managing Director and CEO David Attenborough describes as a “company-defining year.”

The merger, bringing together two of Australia’s gaming industry giants, 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,” Attenborough said in a fling to the Australian Securities Exchange on Wednesday.

“The integration of the two businesses is on track, with initial business improvements and cost initiatives implemented.”

Although the merger was directly behind the sharp revenue jump, Tabcorp reported solid growth across most its segments including a 0.6% increase in Wagering & Media revenues on a pro-forma basis to AU$2.5 billion. It included 2.5% revenue growth from the TAB, driven by a 16.3% increase in digital turnover to AU$5.1 billion, which offset a 3.3% decline in retail turnover to AU$6.0 billion.

In the Lotteries & Keno segment, lotteries revenue climbed 4.9% to AU$2.1 billion on a pro-forma basis with digital sales up 27.8%. Keno revenues were AU$220.1 million, up 3.5%.

Gaming Services revenues held steady pro-forma at AU$315 million.

Looking ahead, Attenborough said Tabcorp would continue to focus on building the newly merged entity.

“The delivery of EBITDA synergies and business improvements from the integration of Tabcorp and Tatts is on track,” he said. “Initial synergies and business improvements of AU$8 million of EBITDA were delivered in FY18 and all decisions have been taken to deliver AU$50 million in FY19. The target remains at least AY$130 million of EBITDA from synergies and business improvements in FY21.

“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 organizational culture. We’re making good progress on this priority.”

Tabcorp has announced a fully franked final dividend of AU$10.0 cents per share, payable on 14 September 2018.

 

 

 

 

What's new

Japan lottery ticket sales continue decline

Japan lottery ticket sales continue decline Sales of lottery tickets in Japan have fallen for a second straight year, down 6.9% to JPY786.6 billion in 2017 according to official figures released this week. According to a report in The Japan Times, the decline represents the first time since 1997 that sales have come in below JPY800 billion. ... Wednesday, 15 August 2018 07:24

“Only a matter of time before online gambling becomes legal in Australia”

“Only a matter of time before online gambling becomes legal in Australia” It is “only a matter of time” before Australian lawmakers act to make online gambling legal, according to leading authorities in the field. Speaking at this week’s Gaming, Racing and Wagering Australia (GRWA) conference in Sydney, GamePlan Consultants founder Sudhir Kalé said that he expects... Wednesday, 15 August 2018 07:15

Star lodges development application for new Ritz-Carlton hotel tower in Sydney

Star lodges development application for new Ritz-Carlton hotel tower in Sydney Australia’s Star Entertainment Group has lodged a development application with the NSW Department of Planning for its new AU$500 million Ritz-Carlton hotel tower in Sydney. The proposed hotel and residences tower at The Star Sydney complex, together with works in a connected ribbon development, w... Wednesday, 15 August 2018 06:43

Macau eSports founder denies cryptocurrency scheme accusations

Macau eSports founder denies cryptocurrency scheme accusations The founder of Macau-based eSports organization Grow uP eSports has hit back at what he describes as “baseless and calumnious allegations” in relation to a cryptocurrency mining scheme that has left around 70 Macau locals HK$20 million out of pocket. In a strongly worded statement sent to Insid... Wednesday, 15 August 2018 06:36

Current Issue

OZ VIP: A new dawn

OZ VIP: A new dawn It has taken just 12 months for Australia’s VIP turnover to rebound following the arrests of 19 Crown Resorts employees in China in October 2016, but the balance of power between Australian operators has shifted dramatically in the process. By Ben Blaschke   Just 12 months after the release of... Sunday, 29 July 2018 22:32

Waiting for Garapan

Waiting for Garapan Imperial Pacific says it will miss another deadline for completing its Saipan casino hotel, and there’s no consensus on a completion date. Meanwhile, VIP roll and trade receivable numbers soar. By Muhammad Cohen   Imperial Pacific International continues to excel at manythings. Its monopoly ca... Sunday, 29 July 2018 22:27

License to thrill: How casino re-tendering will shape Macau’s future

License to thrill: How casino re-tendering will shape Macau’s future Professor Glenn McCartney takes a look at the impending Macau casino re-tendering process and why the government’s criteria for issuing licenses will shape the city’s tourism future. By Professor Glenn McCartney   Macau’s casino concession and sub-concession contracts will all end in a few... Sunday, 29 July 2018 22:21

Making live online gaming a reality

Making live online gaming a reality Latency has long been the ultimate challenge for online gaming operators in their quest to provide a quality product, but a new open framework technology could prove to be a game-changer. By Jaheer Abbas | Senior Director, SEA & India at Limelight Networks   It’s hard to imagine that onlin... Sunday, 29 July 2018 22:09