Tabcorp pays £39m to exit gaming venture

The company has to pay a millionaire figure in order to exit its venture with Sun Bets.

UK.- Tabcorp Holdings announced on Thursday that it would pay £39.5 million in order to exit the struggling Sun Bets gaming joint venture. Sun Bets is expected to cease trading in the upcoming days.

Tabcorp said that it expects to record an after-tax charge of approximately A$91 million relating to the exit this fiscal year. David Attenborough, Tabcorp’s chief executive, said: “The performance of Sun Bets has been below expectations and we do not expect a material improvement over the next 18 months.” The Australian company is expected to be subject to another £5.6 million in other costs related to the closure in fiscal 2019. 

Back in February, the company reported a 58.2 per cent decrease in first-half statutory net profit after tax (NPAT) to £14.3 million. NPAT also fell 20.2 per cent to £46.2 million. It also struggled with online competition, triggering its biggest daily share price fall in five years.