Tabcorp Holdings Limited (ASX: TAH) publicly filed its 2018 financial report this morning, revealing a 71% jump in revenue after its combination with Tatts Group.
Tabcorp is a name synonymous with gaming and gambling in Australia. Having merged with Tatts Group, Tabcorp has operations in wagering, keno, lotteries and more. It describes itself as a “world-class” gambling and entertainment group.
For its 2018 financial year, Tabcorp posted revenue of $3.83 billion, up 71% over the prior period, with a profit of $28.7 million. That compares with analysts’ consensus forecasts for profit of $170 million, according to Bloomberg.
“FY18 was a company-defining year for Tabcorp,” Tabcorp CEO David Attenborough said.
“The combination with Tatts has created a world-class, diversified gambling entertainment group with an attractive portfolio of market-leading brands across wagering, media, lotteries, Keno and gaming services.”
On a profit forma basis, Tabcorp said its Lotteries & Keno business experienced a 4.7% increase in revenue and 10% rise in EBITDA (click here to learn what EBITDA means).
Mr Attenborough said Tabcorp’s focus for 2019 will be the integration of the two companies and drawing cost savings from the businesses.
“The integration of the two businesses is on track, with initial business improvements and cost initiatives implemented,”
Attenborough added. “We have taken decisions to underpin $50m of EBITDA synergies and business improvements in FY19 and are on target to deliver at least $130m in FY21.”
Tabcorp’s board of directors resolved to announce a fully franked dividend of 10 cents per share. In 2019, Tabcorp said it plans to pay a dividend equivalent to 100% of profit before significant items and adjustments for wagering licences and purchase price accounting.
