Playing large Tabcorp confirms break-up affords from a number of events

0
77

Shares in the $9.1 billion firm rose 11.7 per cent to a near 12-month high of $4.58 on the news, and were last up 8.2 per cent to $4.43.

Investors have been agitating for a split of the company’s businesses which led to the departure of chairwoman Paula Dwyer at the end of last year. Tabcorp’s chief executive David Attenborough is due to follow her out the door this year.

Tabcorp’s traditional wagering business, which was already struggling against online competition, had a tough year in 2020 with COVID.

It forced the company to raise $600 million last August to weather the pandemic storm and slash the value of its wagering business by $1 billion in its full-year accounts after it was hammered by the forced closure of pubs, clubs and betting shops, and the suspension of sporting leagues.

It pushed the group to an $870 million annual loss for the 2020 financial year, compared with a $361 million profit in 2019.