Post-merger operations impacted by costs and impairment charges
The historic merger of Australian gambling giants Tabcorp and Tatts has resulted in profits at the latter falling noticeably, according to corporate reportage for the year ended June 30 2018.
Costs and impairment charges are apparently the culprits as overall revenues rose 3.6 percent year-on-year to to AU$2.9 billion, with the lotteries and digital divisions the main contributors.
Tatts suffered increases in merger-related costs, up 26.6 percent to A$42.3 million, and $149 million in impairment charges relating to the UBET online business.
The operator’s profit after tax plunged 83.6 percent to A$36.2 million.
Lotteries generated revenue of A$2.1billion, up 4.9 percent derived from over 2.9 million online punters, whilst Digital turnover was up 12.9 percent, boosted by a successful FIFA World Cup and new products such as Tappy, UBET’s cash-based betting product.
Wagering revenue fell marginally year-on-year to A$530 million.
Tatts reported operating expenses up 14 percent at A$473.6 million, and expenditure on taxes, fees and commissions up 3.4 percent at A$1.9 billion.
