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Tabcorp Update

Tabcorp posted broadly stable results for the full year ended 30th of June 2016. Revenue and underlying EBITDA both showed slight improvements of 1.5% while underlying net profit increased by 8.5% due to lower interest and depreciation costs. These results exclude significant items relating to establishment of the group’s new online UK wagering business Sun Bets, AUSTRAC Civil Proceedings and income tax benefits.

 

From an operational point of view, Tabcorp is still under pressure from shifts in consumer preferences and increased digital competition. As a result, the group will need to fund continual growth initiatives to maintain its market share as the sector evolves. In our opinion, Tabcorp is in a strong position to do so and have started with the launch (Q4 2016) of their new online wagering and gaming business ‘Sun Bets’ in the UK. This has been followed by the proposed acquisition of Intecq.

 

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