Tatts merger and Sunbets weigh down Tabcorp financials in first half report

Tabcorp first half net profit plunged 58 percent, the Aussie betting giant reported Thursday, despite an 18.7 percent rise in Group Revenues.

The company attributed its performance to costs related to its A$11 billion merger with Tatts Group and a poor performance from UK-facing joint online gambling venture Sun Bets which continues to operate under review.

Tabcorp reported A$1.376 billion in revenues and net profit of A$24.6 million after A$25.5 million in significant merger related items after tax were deducted, saying before the deduction net profit rose 2.1 percent to A$127.9 million.

SunBets, Tabcorp and News International’s joint delivered a loss of A$22.5 million in EBITDA in the first half, the company reported, describing its performance as “unsatisfactory”.

“Significant items have been raised in respect of a Sun Bets onerous contract provision of $49 million and impairment of business assets of $4.3 million ($3.2 million after tax),” a Tabcorp statement reads.

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