Tabcorp’s first-half profit has soared to $182.5 million as the gambling giant benefited from its 2017 merger with Tatts.
Revenue for the six months to December 31 more than doubled to $2.787 billion as Tabcorp absorbed its former rival’s income, while net profit increased more than seven-fold to $182.5 million.
The relative surge is largely because Tabcorp only benefited from 18 days’ of contributions from Tatts in the prior corresponding period, which was also weighed down by large one-off costs related to the companies’ merger.
However, the gaming giant said on Wednesday it has delivered $24 million of earnings from synergies and business improvements, and has raised its full-year target from $50 million to $55 million.
‘Tabcorp delivered a strong financial result in 1H19 on the back of the diversification benefits from the combination with Tatts,’ managing director and chief executive David Attenborough said.
‘We have created a sustainable and diversified gambling entertainment company, with the scale to invest and grow.’
The lotteries and Keno division was the big revenue driver, with income from surging 18.1 per cent to $1.409 billion.
Revenue from wagering and media fell 3.8 per cent on a pro forma basis to $1.222 billion amid stiff competition, sacrificing margins but lifting the number of active customers 6.7 per cent to 533,000.
Revenue from gaming services and regulatory services – relatively minor contributors to the bottom line – both dipped.
At 1016 AEDT, Tabcorp shares were down 7.0 cents, or 1.47 per cent, at $4.70.
TABCORP TICKS UP
* Net profit $182.5m vs $24.6m
* Revenue $2.787b vs $1.338b
* Interim dividend flat at 11 cents, fully franked