Tabcorp shares down as profits miss expectations
Australian operator’s share price falls 4% on a decline in earnings from wagering despite double-digit turnover growth from online arm
Tabcorp’s share price fell today after the Australian gambling giant reported a 4% decline in earnings from its wagering division during H1 2019 despite strong turnover growth from its digital division.
The Melbourne-based company’s share price was down 4% after Tabcorp revealed earnings from its wagering and media division had missed expectations by nearly AU$12m at $159.6m.
Group profit of $210.6m was more than double what Tabcorp recorded in the six-month period the previous year but short of the $223m previously forecasted.
Turnover from the group’s wagering and media business was broadly flat year-on-year at $8.5bn, although Tabcorp did record solid turnover growth from its digital arm which grew 11.6% to $3.6bn.
In late 2017, Tabcorp merged with rival Australian operator Tatts Group as part of a multi-billion dollar deal and has spent much of 2018 integrating the two businesses which delivered $24m in EBITDA from cost savings during H1.
“We have created a sustainable and diversified gambling entertainment company, with the scale to invest and grow,” David Attenborough, Tabcorp managing director and CEO, said.
“Our focus is on ensuring a strong and aligned risk-aware and performance culture centred around our new purpose of ‘Excitement with Integrity’. Tabcorp is well positioned for 2019 and beyond.”
Tabcorp placed 27th in EGR’s Power 50 rankings last year.