Tabcorp has announced its decision to demerge its divisions and create two standalone ASX-listed businesses. This strategic move comes after a thorough business review that commenced in March, during which the operator considered selling its wagering and media division. In February, Tabcorp received multiple unsolicited approaches and proposals, including an offer from Entain. In April, Entain made a revised AU$3.5bn offer to acquire the wagering and media division.
Following Tabcorp’s announcement of the demerger, Entain expressed disappointment with the decision. The company believes that its all-cash offer would have provided better outcomes for shareholders, customers, employees, and the wider industry. Emphasizing the importance of price discipline in building shareholder value, Entain highlighted the success of its Australian-facing brands, Ladbrokes, Neds, Betstar, and Bookmaker, which had a record year in 2020 and are expected to continue thriving.
Entain expressed confidence in the growth of its Australian business, attributing it to the quality of its products and the support of the Australian racing industry. Although Entain’s net revenue for the first quarter of 2021 declined by 13% year-on-year, mainly due to the ongoing closure of a significant portion of its retail estate, its online business saw a 33% year-on-year revenue increase, marking its 21st consecutive quarter of double-digit growth.
