MENU

Here’s why Tabcorp Holdings Limited (ASX:TAH) shares are up 8% today

Tabcorp Holdings Limited (ASX: TAH) shares were up 8% today after the company released its full year FY 2018 results.

Having issued disappointing half year results at the beginning of the year, Tabcorp surprised the market with an upswing in profits and as expected, the impact of the merger with Tatts Group took centre stage.

The raw numbers*

  • Revenues for the year were $3,828.7 million, up 71.4%
  • EBITDA was $529.4 million, up 69.5%
  • Net Profit After Tax was $28.7 million, up from a $20.8m loss last year
  • Earnings Per Share of 1.9 cents per share, up from a 2.5 cents loss per share last year
  • The results also included significant expense items after tax of $217.5m from the Tatts combination,
    Sun Bets exit and Luxbet closure

* The amounts above include Tatts Group from 14 December 2017.

What did management have to say?

Management were pretty upbeat over the potential synergies from the Tatts merger.

The company’s CEO David Attenborough said, “FY18 was a company-defining year for Tabcorp. The integration of the two businesses is on track, with initial business improvements and cost initiatives implemented. We have taken decisions to underpin $50 million of EBITDA synergies and business improvements in FY 19 and are on target to deliver at least $130 million in FY 21.”

Outlook

Looking ahead, a combination of digitalisation, new product launches, synergies from the merger as well as industry reforms have set the company up well for future success.

Mr Attenborough said, “FY18 has also been a year of positive change for the gambling sector. A number of reforms have been introduced which aim to make the industry more sustainable. The introduction of point of consumption taxes, the prohibition of synthetic lottery products, advertising restrictions and improved consumer protection measures are creating a fairer playing field. Tabcorp is very well placed to perform in this improved environment.”

Despite Tabcorp shares going up today, our team of experts think these four companies might be a better bet!

4 Stocks for Building Wealth After 50

Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.

And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.

This is your chance to get in at the very beginning of what could prove to be very special investments.

Click here to get started today!

Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned.

You can find Kevin on Twitter @KevinGandiya.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!