New-look Tabcorp back in black

TABCORP has swung to a net profit of $28.7 million in 2017-18 following its merger with Tatts Group, with digital sales and the FIFA World Cup helping to lift the gaming giant’s reach and revenue.

Tabcorp yesterday announced full-year revenue for the 2017-18 financial year jumped 71 per cent to $3.83 billion from $2.22 billion a year earlier.

But the latest results – up from a $20.8 million loss a year earlier – were cut back by significant items of $217.5 million, including additional merger costs and costs related to the loss-making Sun Bets and Luxbet operations.

Tabcorp announced it was exiting Sun Bets, a joint venture with News UK, in July, while it closed online operation Luxbet in December. On a pro forma basis – adjusting to account for the impact of the Tatts acquisition and excluding Sun Bets – revenue was up 2.5 per cent to $5.11 billion and earnings 2.8 per cent at $989.2 million.

Meanwhile, revenue from Tabcorp’s wagering and media businesses was steady at $2.462 billion.

But while TAB’s revenue growth was up 2.5 per cent, revenue at UBET – the wagering business owned by Tatts Group – declined by 0.7 per cent.

Tabcorp chief executive David Attenborough said despite customers shifting towards online gambling, bricks and mortar stores weren’t going anywhere.