Tabcorp releases fiscal Q1-2017/18 results

Australian gambling group Tabcorp published its fiscal Q1-2017/18 results this week, recording an overall 5.4 percent y-o-y rise in revenue at A$ 578.8 million, but noting that its UK online venture with a local newspaper, Sunbet, continues to struggle.

The group’s flagship performer remained its Wagering & Media division, which posted revenue up 4.5 percent at A$481.5 million, thanks mainly to a good digital performance.

Overall wagering turnover rose 3.5 percent, with the digital component up 17 percent at  A$1.1 billion; retail betting turnover fell 1 percent to A$1.55 billion.

Problem areas in digital included Luxbet, which the company has had on review following A$13 million in earning losses so far this year, and Sunbet, the group’s UK venture in partnership with the News UK media group. The report notes that struggling Sunbet remains a challenging proposition for the company with revenues up 5.3 percent but still below expectations.

Sunbets, which launched in August last year, lost A$18 million in its first half-year and has been the target for improvements to its online casino and sportsbook by Tabcorp. Like Luxbet, the operation remains under review.

Tabcorp’s chairperson Paula Dwyer told shareholders that for now the group would continue to support and improve Sunbet, but in the continued absence of real improvement would have to consider exercising its rights to shutter the enterprise.

Tabcorp still awaits news of whether its proposed merger with Tatts can go ahead following a federal court decision in September which sent the merger back to the Australian Competition Tribunal for review of its earlier decision to let the deal progress.

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