Australian wagering giant Tabcorp Holdings Limited has executed an agreement to exit its UK sportsbook Sun Bets following discussions with partner News UK.
Sun Bets will cease trading in the coming days with Tabcorp to make a payment to News UK of around AU$71 million to exit the agreement, originally planned to run for 10 years through to 2026. Launched in August 2016, Sun Bets has lost more than AU$135 million in less than two years.
“The performance of Sun Bets has been below expectations and we do not expect a material improvement over the next 18 months,” said Tabcorp Managing Director and CEO David Attenborough. “As such, we have reached an agreement with News UK to exit the agreement.
“While we didn’t get it right, we have taken valuable learnings from the Sun Bets start-up process and operations which will inform our approach across our portfolio. I would like to acknowledge the Sun Bets team for their efforts in building the business from start-up phase.
“We continue to have a strong relationship with News Corporation.”
Tabcorp expects to record a significant item of approximately AU$91 million after tax in respect of Sun Bets in its financial statements for the year ended 30 June 2018, up from AU$52 million in the 1H18 financial statements. The amount includes the exit payment to News UK.
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