Blow to Tabcorp

TABCORP’S first-half profit has slumped by 58 per cent, in part due to costs associated with its $11 billion mega-merger with lotto operator Tatts.

Releasing its first-half results yesterday, Tabcorp said net profit for the six months to December had fallen to $24.6 million, from $58.9 million a year earlier.

It followed a post-tax hit of $57.4 million from one-off items.

Shares in the group tumbled after the results were published, closing 6.9 per cent, or 35c, lower at $4.76.

The results include an 18day earnings contribution of $27.3 million from Tatts, which Tabcorp acquired on December 14.