Tabcorp FY profit falls

New structure of Victorian gambling industry weighs on gaming giant's full-year profit result.

Tabcorp Holdings (TAH) has posted a significant loss in full-year net profit as the gaming giant adjusts to the new structure of Victoria's gambling industry.

In the year to June 30, Tabcorp posted net profit of $126.6 million, a 63% decrease on the $340 million recorded in 2012.

Underlying net profit was $139.1 million, just above analysts' consensus forecasts for $138.9 million.

The group's result was weighed by a number of costs associated with the restructure of the gambling industry, including an $18.6 million impairment charge for its Victorian Keno licence and a $47.2 million write-off of goodwill on its now decommissioned Victorian Tabaret Gaming business.

In the same period, revenue was $2.1334 billion, a 30% decrease on the previous year's total revenue of 3.0385 billion.

The gaming giant declared a fully-franked full-year dividend of 19 cents, lower than the previous year's 24 cents distribution.

Tabcorp will pay a final dividend of 8 cents on September 20, which combined with the already paid interim dividend of 11 cents equates to the full-year payment.

The date payable for the final dividend is August 20.

In June, the group's long-term credit rating was downgraded by Standard & Poor's after the gaming giant announced it would pay $75 million for a 20-year extension to its retail betting monopoly in New South Wales. 

The ratings agency said it had lowered the group's rating to BBB- from BBB, but its long-term rating outlook was stable.

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