Tabcorp Profits Down 33 Percent Following Anti-Money Laundering Action
Australian gambling giant, Tabcorp, has felt the kick of defending alleged breaches of anti-money laundering and counter-terrorism financing laws with a 33 percent drop in profits for the first half of the financial year.
Tabcorp reported a 33 percent drop in profits from $122.4 million to $81.9 million compared to the same period last year. However, underlying profits, with the one-off items of $15.6 million excluded was increased by 7 percent to $97.5 million.
The company has reported costs of $7.2 million to date defending itself against the charges brought by the Australian Transaction Reports and Analysis Centre (AUSTRAC) in July 2015 under the Anti-Money Laundering and Counter-Terrorism Financing Act. Tabcorp has acknowledged that it is too early to ascertain the full financial impact of the case on the company.
Tabcorp has been working with AUSTRAC to resolve any issues and has recently implemented an upgraded anti-money laundering program that encompasses all its operations.
The drop in profits was also impacted by $8.4 million in costs related to the launch of Sun Bets. In addition, in the prior corresponding period, Tabcorp was awarded a $31.5 million one-off tax benefit.
Revenue on TAB Racing was up to 2 percent to $895 million. Fixed odds racing products in TAB Racing rose 19.6 percent to $256.8 million. Betting revenue on mobile continues to strengthen, with a 9 percent increase to $1.9 billion, which accounts for 65 percent of all digital wagering.
The company’s poker machine roll-out continues with 730 more machines contracted than six months previously, taking the number from 8,820 to 9,550.
Their wagering and media business remained the core contributors to their revenue for the period.
April 16, 2017