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Posted: 2019-08-14 06:04:41

Gambling group Tabcorp has lifted its fully-year earnings by 7.6 per cent, as its booming lotteries and keno business offset lower profits from its bookmaking arm. The company on Wednesday reported earnings before interest, tax, depreciation and amortisation (EBITDA), and before significant items of $1.06 billion for the year to June 30.

That compares to $989 million a year earlier on a pro-forma basis of the combined Tabcorp and Tatts businesses, which merged last year. The company said its lotteries were becoming more popular as it tweaked the form of the games to deliver larger and more frequent jackpots, and more winners overall.

The EBITDA results were 1 per cent below the market consensus, and "slightly disappointing", according to Macquarie analyst David Fabris.

While it was pleasing Tabcorp had reaffirmed its forecast to deliver savings of $135 million to $145 million through the merger, "we do question the ability to capture the revenue benefits given that the generosities spend in wagering has impacted fixed price yields," Mr Fabris said.

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