Tabcorp's financial results dragged down by takeover costs

According to Chairman Paula Dwyer and Ziggy Switkowski, the chair of Tabcorp’s remuneration committee, the one-off costs booked in this year’s result had significantly depressed the annual figures “well below” what the board had expected when the budget for the year was set.

“The chief executive and his senior team recommended that no short-term incentive payments be made for the year ended 30 June 2017,” Dwyer and Switkowski said.

Tabcorp’s (TAH) net loss of $20.8 million compared to a net profit of $169.7m in the previous fiscal year. Still, the company said revenue rose by 2 per cent to $2.2 billion in the 2017 fiscal year.

The company reported a final dividend of 12.5 cents, bringing the total dividend payout for the fiscal year to 25 cents.

Tabcorp's plan for FY18 centers on completing the combination with Tatts, said Chief Executive David Attenborough. “At the same time, we have a clear set of priorities to drive performance in our core businesses and benefit from the strategic initiatives we delivered in FY17.”

Aside from costs associated with the Tatts merger, Tabcorp said an operating loss and asset impairments from online betting business Sun Bets hurt the fiscal year result.

Tabcorp said a scheme booklet for the proposed merger with Tatts would be released in September to reflect the 2017 fiscal results from both companies. Tatts shareholders are slated to vote in October.