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Tabcorp posts $20.8m full-year loss

Prashant Mehra  |  04 Aug 2017Text size  Decrease  Increase  |  

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SYDNEY - [AAP] Tabcorp (ASX: TAH) has slipped to a full-year net loss of $20.8 million on the back of costs related to its proposed merger with Tatts, legal battles, and its new UK business.

The result contrasts sharply with last year's $169.7 million profit and comes amid a 2 per cent lift in revenue to $2.23 billion for the 12 months to June 30.

"FY17 was a strategically important year for Tabcorp as we reshaped the business for growth," managing director David Attenborough said.

"We made investments in acquiring Intecq, establishing Sun Bets and progressing the combination with Tatts, which we expect to complete by the end of the year."

The gaming giant said its bottom line was hit by $199.7 million in costs, including the Australian Transaction Reports and Analysis Centre's Federal Court case against it, impairments at its new UK business Sun Bets, its proposed takeover of Tatts, and its acquisition of gaming technology firm INTECQ.

Tabcorp is in the midst of an $11 billion merger deal with gaming rival Tatts Group (ASX: TTS), which is facing some opposition from rivals as well as the consumer watchdog.

The two merging companies will oppose the applications brought by both the Australian Competition and Consumer Commission (ACCC) and CrownBet for a judicial review of the Australian Competition Tribunal's decision to approve the merger, Tatts Group said in a separate statement on Friday.

The court hearing is scheduled for August 28 and 29.

Tatts Group also said the two companies will defer the release of the merger scheme booklet to shareholders to September in order to incorporate their FY17 results.

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

TABCORP SLIPS TO FY LOSS

* Full-year net loss of $20.8m vs $169.7m profit

* Revenue up 1.9pct to $2.23bn

* Final dividend steady at 12.5 cents a share, fully franked

 

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