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UPDATE 1-Takeover costs and impairments drag Australia's Tabcorp to net loss

Published 04/08/2017, 09:53 am
Updated 04/08/2017, 10:00 am
© Reuters.  UPDATE 1-Takeover costs and impairments drag Australia's Tabcorp to net loss
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(Adds CEO quote, Tatts takeover context)

Aug 4 (Reuters) - Australia's biggest horse-race betting company, Tabcorp Holdings Ltd TAH.AX , on Friday posted a 3.8 percent fall in full-year underlying profit, in line with guidance and forecasts, but swung to a net loss after one-off costs.

The company reported net profit, before significant items, of A$178.9 million ($142.23 million) for the year to June 30, compared with A$185.9 million a year ago. That was in the upper end of guidance given a month ago for profit between A$173 million and A$180 million.

Its statutory loss was A$20.8 million after one-off costs related to its A$6.15 billion buyout of lottery owner Tatts Group Ltd TTS.AX , and a previously flagged impairment charge for online wagering business Sun Bets among other items.

"Our plan for FY18 centres on completing the combination with Tatts," Chief Executive Officer David Attenborough said, adding that the company expected to complete the transaction in the last quarter of 2017.

Melbourne-based Tabcorp's A$6.15 billion takeover of lottery owner Tatts, a match-up which has fallen through twice before since 2006, would create a domestic gambling powerhouse to fend of growing competition from overseas online rivals such as Britain's William Hill WMH.L and Ireland's Paddy Power PPB.I .

The company announced a final dividend of 12.5 Australian cents, taking the total for the year to 25 cents, up from 24 cents a year ago. ($1 = 1.2579 Australian dollars)

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