Sun Bets “remains under review” after £12.7m loss
Tabcorp says H1 2018 performance from UK-facing brand was “unsatisfactory” after reporting revenues of £2.1m
Tabcorp’s Sun Bets business “remains under review” after the UK-facing brand posted a AU$22.5m (£12.7m) half-year loss despite an improved trading performance in the final three months.
The Australian operator today said Sun Bets’ performance remained “unsatisfactory” in the H1 2018 period after recording an EBITDA loss $22.5m, a 5% year-on-year increase on the $21.3m loss in the same period last year.
However, revenues during the six-month period were up 147% year-on-year to $3.7m, while turnover increased 63.5% from $96.8m to $158.3m and number of customers 54.1% to 131,000.
Tabcorp’s current minimum payment obligations to News UK are £35.7m to 31 December 2019, although it may terminate the agreement if Sun Bets does not achieve revenue equivalent to the minimum fees.
Elsewhere, Tabcorp revealed an 18.7% year-on-year rise in Group revenues, which included an 18 day contribution from Tatts Group from 14 December 2017, while statutory net profit after tax plunged 58.2% to $24.6m due to merger costs and hit from Sun Bets business.
The combination of Tatts Group and Tabcorp completed in December 2017 and the integration is expected to take two years to complete.
“The diversification benefits that the Tabcorp-Tatts combination brings were highlighted by the six-month financial results of the Tatts Group businesses,” Tabcorp’s managing director and CEO, David Attenborough, said.
He added: “Tatts’ Lotteries and Gaming businesses delivered strong earnings growth, while the Wagering performance reinforces the opportunity we have in successfully integrating our two Wagering businesses.
“Tabcorp is well placed to compete in the evolving regulatory landscape. This includes the introduction of point of consumption taxes, and restrictions on credit betting, advertising, inducements and live betting.”