Tabcorp’s digital-betting business has recorded strong growth, but the company’s full-year profit was hit by the cost of defending legal proceedings and its new UK joint venture Sun Bets.
The wagering giant’s net profit after tax fell 49 per cent to $169.7 million from $334.5 million a year ago. But excluding the one-off items, net profit for the year to June 30 rose 8.5% to $185.9 million on a 1.5% increase in revenue to $2.19 billion.
Full-year revenue edged up 2 per cent to $2.189 billion in the year ended June 30 from the previous year’s $2.156 billion.
Sun Bets, a joint venture with News Corporation, cost $14.4 million, while another $13.6 million was spent defending charges brought by the federal government’s anti-money laundering regulator Austrac.
Earlier this week, Tabcorp announced it would acquire ASX-listed gaming technology group INTECQ for $128 million.
Tabcorp said it would pay a final dividend of 12 cents a share, making 24 cents for the year to June.
That is up 20% on 2014-15’s payout.
Retail wagering revenues fell 1.1% due to a drop from its retail network in the year to $6.5 billion, but digital turnover jumped 12% to $3.8 billion.
The company said digital turnover improved dramatically in the second-half with a 15% increase, up from the 9.2% rise in the first-half. Keno, which was revamped a year ago to attract younger players, has also returned to growth.
“Recent initiatives such as the proposed acquisition of Intecq and the launch of Sun Bets further strengthen and diversify our operations,” Mr Attenborough said.
"Sun Bets is an exciting opportunity for Tabcorp to take its market-leading wagering capabilities into the $A7 billion UK online gambling market." The Sun Bets business operates in partnership with the News Corp-owned News UK. Tabcorp is the wagering operator and holder of the relevant gambling licences, and News UK provides marketing and promotional services.”
Tabcorp shares closed down 0.2% at $4.84.
