Tabcorp to receive US$53.4m refund from ATO

Tabcorp has settled a tax dispute with the Australian Taxation Office.

Australia.- Tabcorp has settled an income tax dispute with the Australian Taxation Office (ATO). It has paid the disputed tax liabilities and interest and will receive a refund of approximately AU$83m (US$53.4m), equivalent to 20 per cent of the disputed amount. All pending proceedings will be dismissed.

According to a company filing, in accordance with the terms of the Separation Deed dated March 25 2022, Tabcorp will also disburse approximately AU$37m (US$23.8m) to The Lottery Corporation Limited (TLC). Tabcorp anticipates recognising an AU$45m benefit after tax in its financial statements for the fiscal year ending June 30 2024. The company said this benefit will be treated as a significant item.

The settlement also outlines an agreement regarding the treatment of future licence fees payable for renewals of existing licences. The company said: “Subject to agreed limitations, Tabcorp must treat the fees as being of a capital nature. Tabcorp does not believe this will have any material effect on future results.” 

Tabcorp posts revenue of US$1.58bn for FY23

In August, Tabcorp shared its financial results for the financial year ended June 30. Revenue from continuing operations was AU$2.43bn (US$1.58bn), up 2.6 per cent year-on-year. 

Group EBITDA was AU$391m, up from AU$381.6m. Statutory net profit after tax (NPAT) was AU$66.5m. Statutory net profit before income tax, net finance costs and equity accounted investment was AU$117.9m, compared to a loss of AU$75.1m in last year.

Wagering and media revenues were AU$2,230.8m, up 2.2 per cent. Revenues from wagering increased by 1.9 per cent to AU$1,761.1m. TAB cash wagering revenues were AU$818.4m, up 25.1 per cent, as customers returned to venues post Covid-19 lockdowns and retail closures.

TAB digital wagering revenues were AU$942.7m, down 12.2 per cent, impacted by a softening digital wagering market. Tabcorp reported a 3.4 per cent increase in media and international revenue to AU$469.7m. This was attributed to higher revenue from vision exports and new digital distribution agreements. Gaming services revenues were AU$203.6m, up 5.5 per cent.