Tabcorp swings to profit in first half, boosted by new Victorian licence
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The news: Gambling group Tabcorp swung to a first-half net profit of $25.3 million, after being hit by a $732 million impairment in the prior-year period.
The company said the profit boost also reflects the benefits from the transition to its reformed wagering licence in Victoria, which commenced in August last year.
The numbers: Tabcorp reported net profit after tax before significant items — which weighed heavily on last year's half-year result — of $22.1 million, up 25.6% year on year.
Group revenue rose 10.1% year on year to $1.33 billion, boosted by 18.2% growth in revenue from its cash wagering segment.
The company declared an interim dividend of 1 cent per share, flat year on year.
The context: Tabcorp said its improvement in earnings reflects the start of its reformed Victorian licence, as well as cost discipline and increased competitiveness through new initiatives.
The company is targeting operating expenditure savings of $30 million for the full year, 50% more than its previous target. Capex is expected to be between $110 million and $120 million, around $25 million lower than previous guidance.
The source: ASX announcement
