Tabcorp review of 'unsatisfactory' Sun Bets continues following big loss
Sun Bets' performance has been "unsatisfactory" and the business remains under review according to the latest financial results from Australian gambling giant Tabcorp.
The company was launched in Britain in 2016 following a deal between Tabcorp and News Corp subsidiary News UK – publisher of The Sun – but has failed to meet management's expectations.
Tabcorp said Sun Bets recorded an ebitda (earnings before interest, taxation, depreciation and amortisation) loss of A$22.5 million (approximately £12.6m/€14.3m) in the six months to the end of December, with performance remaining unsatisfactory despite a "better trading performance" in the second quarter of their financial year.
The results statement also said significant items had been raised in respect of a Sun Bets "onerous contract provision of $49m and impairment of business assets of $4.3m ($3.2m after tax)".
Sun Bets' performance and the costs of Tabcorp's recent merger with Tatts Group meant Tabcorp's results failed to meet market expectations.
Net profit for the first half of the year fell by 58 per cent to A$24.6m.
Chief executive David Attenborough said: "The fundamentals in Tabcorp’s wagering business remained strong in the first half, with good turnover growth and a strong uplift in digital turnover and customer acquisition.
"This was pleasing in a highly competitive wagering market in which competitors aggressively pursued customer acquisition ahead of regulatory change."
Members can read the latest exclusive interviews, news analysis and comment available from 6pm daily on racingpost.com