Tabcorp to exit Sun Bets
Tabcorp Holdings Limited today announced that it has completed discussions with News UK and executed an agreement to exit Sun Bets, the UK online wagering and gaming business the parties have operated in partnership since 2016.
Sun Bets will cease trading in the coming days and Tabcorp will make a payment to News UK of £39.5 million (approximately A$71 million) to exit the agreement.
Tabcorp’s Managing Director and Chief Executive Officer David Attenborough said: “The performance of Sun Bets has been below expectations and we do not expect a material improvement over the next 18 months. As such, we have reached an agreement with News UK to exit the agreement.
“While we didn’t get it right, we have taken valuable learnings from the Sun Bets start-up process and operations which will inform our approach across our portfolio.
“I would like to acknowledge the Sun Bets team for their efforts in building the business from start-up phase.
“We continue to have a strong relationship with News Corporation.”
Tabcorp expects to record a significant item of approximately $91 million (after tax) in respect of Sun Bets in its financial statements for the year ended 30 June 2018, up from $52 million in the 1H18 financial statements. This amount includes the exit payment to News UK, which is partly covered by the onerous contract provision in 1H18, and asset impairments. Tabcorp is expected to incur other closure related costs in FY19, up to approximately $10 million.
For more information:
Media: Nicholas Tzaferis, GM Corporate Affairs, +61 3 9868 2529
Financial analysts: Sacha Krien, GM Investor Relations, +61 3 9868 2794