Tabcorp shares surge as profit jumps to $362.5m

Business News

Tabcorp’s profits surged more than 12-fold to $362.5 million in the gambling giant’s first full-year of combined operations with the Tatts Group.

The betting behemoth lifted revenue by 46 per cent to $5.5 billion in the 12 months to June 30, with its biggest business, lotteries and keno, hitting a record $2.86 billion revenue following digital growth and string of favourable jackpots on the new Powerball game, as well as at Oz Lotto and Lucky Lotteries.

The lotteries result more than offset a weaker performance by the company’s wagering and media business, which is in the first year of a three-year integration that includes 1,300 UBET retail venues in Queensland, Tasmania, SA and NT to TAB.

Wagering and media revenues rose 9.0 per cent to $2.3 billion on a statutory basis, with active customer numbers up 2.5 per cent to 538,000. But income by 3.6 per cent on a pro-forma basis if the Tatts merger had been in place for FY18.

Chief executive David Attenborough said the first full year of the Tabcorp-Tatts combination proved the benefits of the merger. “Our businesses have a clear set of priorities to build on their competitive advantages and drive long-term profitable growth,” Mr Attenborough said.