Tabcorp begins talks to pull out of Sun Bets venture

The Australian company is seeking an exit from the Sun Bets joint gambling venture.

Australia.- Tabcorp has revealed that it is in discussions with News UK to exit the gaming joint venture Sun Bets due to underperforming activity. The unit had posted a core earnings loss of US$17.1 million during the first half of 2017.

The horse-race gambling entity had revealed a strategic review of the business last year after challenging trading conditions. Tabcorp has started consultation with Sun Bets’ employees regarding the proposal, the company said in a statement according to Reuters.

“Discussions remain ongoing and an agreement has not been reached at this stage,” Tabcorp said in the statement. Back in February, the company reported a 58.2 per cent decrease in first-half statutory net profit after tax (NPAT) to US$18.7 million. NPAT also fell 20.2 per cent to Aus$82 million. It also struggled with online competition, triggering its biggest daily share price fall in five years.