Australian bookmaker Tabcorp says its joint venture with British tabloid, The Sun, is to be subject to a review, after another disappointing set of figures dragged down its FY profits.
The group said that Sun Bets attracted only $2.9m in revenues in the second half of 2017, leading to an unpleasant net loss of some $18m. Tabcorp’s poor UK performance equated to a 58 percent plunge in profits to only $20m.
“Sun Bets performance remained unsatisfactory in the first half 2018, despite a better trading performance in the second quarter of 2018,” Tabcorp stated.
“The Sun Bets business remains under review.”
Tabcorp chief executive David Attenborough went on to elaborate that Sun Bets had been struggling to gain traction because it was still unable to offer the games, live betting and wagering experience that it needed to differentiate itself from more than 400 operators.
“To date we’ve not achieved that and, therefore, our performance is unsatisfactory,” Attenborough said.
Tabcorp added that its “minimum payment obligations” to News UK (The Sun’s owner) under its joint venture partnership amount to £35.7m by the end of 2019.