By Andy Young

Tabcorp has reported a 49.3 per cent drop in its full-year profits, as legal costs around its fight of money-laundering allegations add up.

The company has spent close to $20m in fighting its case against Australia’s financial intelligence agency, Austrac. Tabcorp is accused, by Austrac, of breaching anti-money laundering laws by failing to report suspicious transactions and not fixing its systems to prevent money laundering.

While the legal costs have hit the wagering giant’s profit, Tabcorp reported “improved momentum” in its wagering and media division, as well as a return to growth for the Keno business.

Speaking about the result Tabcorp managing director and CEO, David Attenborough, said: “We enhanced our strategic position and delivered improved financial performance in FY16, resulting in a 20 per cent lift in dividend per share. Our investment was focused on strengthening our businesses and positioning for future growth, while also delivering strong growth in shareholder returns.

“Our wagering and media business grew in FY16, benefitting from TAB’s multi-channel distribution model and the integration with the Sky media business. Momentum improved across the year, with trends in the second half stronger than the first half.

“Keno returned to growth, as customers responded positively to the brand transformation and the pooling of jackpots between NSW, Victoria and, recently, the ACT. The progress of these initiatives during FY16, as well as initiatives planned for the coming year, provide confidence that Keno will continue to grow.”

Attenborough added: “We remain focused on driving future performance and generating attractive returns from the businesses we operate. Our target is to achieve 14 per cent Return on Invested Capital in FY17.

“We will continue to invest in growth initiatives that can differentiate our businesses and create value for shareholders. Our aim is to create outstanding customer experiences through best-in-class product and technology and to earn the reputation as the most respected gambling company in the world.”

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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