Tabcorp looks to better 2018 after $ 20.8m FY loss

TABCORP chief executive David Attenborough expects 2018 to be transformational after the gaming giant slipped to a $ 20.8 million loss for the 2016/ 17 financial year.

“FY17 has been a strategically important year for Tabcorp,” Mr Attenborough said.

Tabcorp’s result, down from a $ 169.7 million profit in the previous year due largely to the $ 199.7 million of significant items, came on the back of a string of heavy costs.

“We’ve executed on a number of initiatives that have been critically important to position the group for future growth and deliver sustainable returns for shareholders and our other stakeholders,” Mr Attenborough said. “Overall, in FY17 we have made significant investments to better position Tabcorp to deliver sustainable future growth and the cost of these investments is reflected in our FY17 results.” That includes the $ 53.9 million cost of its proposed $ 11 billion merger with Tatts, the acquisition of gaming- tech firm INTECQ for $ 4.9 million, and the Sun Bets operating loss of $ 47.6 million.

Significant items also include the $ 61.8 million cost incurred due to AUSTRAC proceedings in which Tabcorp agreed to a $ 45 million settlement and further impairments of $ 20.7 million.

Mr Attenborough said Tabcorp and Tatts were committed to completing the merger of their businesses by the end of 2017, despite opposition from the competition watchdog and rival CrownBet.

The Australian Competition and Consumer Commission and CrownBet want a judicial review of the Austra- lian Competition Tribunal’s approval of the merger.

The Federal court is set to hear their application, on August 28- 29.

Tabcorp and Tatts have delayed releasing their merger scheme booklet until September, because of the court proceedings.

Tabcorp has declared a fully franked final dividend of 12.5c per share, taking its full- year distribution to 25c.