Next Race Newspaper
Free Bets
My Account

Tuesday, 22 January, 2019

Sun Bets contributes to heavy losses for betting giant Tabcorp

Sun Bets: troubled times since launch in August
1 of 1

Heavy losses at Sun Bets pushed Australian giant Tabcorp into the red in 2016-17 as their start-up bookmaker, a joint venture with News UK, owner of the Sun newspaper, reported losses of A$47.6 million (approximately £29m).

Launched in August 2016, Sun Bets' operating loss dragged Tabcorp down to an overall loss of A$20.8m. The firm also wrote down the value of its Sun Bets assets by A$20.7m.

Tabcorp chairman Paula Dwyer said: "The initial performance of Sun Bets has reminded us of the challenges of start-ups. As a consequence we have reviewed its operating model, capability and financial plans and have undertaken a range of initiatives to maximise the prospects of success."

Tabcorp results at a glance

A$20.8m - Losses for financial year 2017

A$169.7m - Profit for financial year 2016

A$47.6m - Sun Bets operating losses for financial year 2017

Chief executive David Attenborough added: "Performance in our UK start-up Sun Bets was disappointing. We have taken steps to reset its leadership and operations to drive improved performance in 2017-18, and the business is focused on customer acquisition and product development."

Sun Bets underwent a 'reset', including a change in leadership and redundancies, earlier in the summer after struggling since launch last year. 

The Sun Bets agreement with News UK, which receives a revenue share from Tabcorp, has an initial ten-year term. However, Tabcorp has a termination right in December 2019 which can be exercised if the venture is not meeting performance targets.

Tabcorp's planned merger with Tatts Group – due to be completed by the end of 2017 – has also incurred significant costs, while the firm was additionally forced to pay a record settlement of A$45m after failing to comply with Australian anti-money laundering regulations.

Attenborough added: "Overall, in the 2017 financial year we have made significant investments to better position Tabcorp to deliver sustainable future growth and the cost of these investments is reflected in our results."

If you are interested in this, you might like:

Hills happy to go it alone after announcing financial results

Mullen hails TRP deal as Ladbrokes Coral issue trading update

In the 2017 financial year we have made significant investments to better position Tabcorp to deliver sustainable future growth
E.W. Terms
Sky bet