Tabcorp has beaten expectations with a $66.5 million profit.
👉 Background: Tabcorp is the giant Australian betting agency that's been around since 1994. In 2017, Tabcorp merged with Tatts Group, the lottery company, in an $11 billion merger. But after just 5 years together, Tatts Group effectively cut Tabcorp at the knees after it just wasn't performing up to scratch.
👉 What happened: Now, Tabcorp has released its first full year results after the break-up. And they've beaten expectations with a $66.5 million profit.
👉 What else: Not only the strong profit, but Tabcorp is sounding kinda fierce now, claiming that "We've killed a culture of rewarding underperformance". They've even thrown in a fully-franked dividend as icing on the cake for investors.
💡A fully franked dividend is a shareholder payout where the company's already covered the tax, so the investor doesn't have to.
💡When a company makes a profit, it pays a tax on that profit. And then, if it shares some of that profit with its shareholders, then the shareholder may need to pay that tax again.
💡Franking credits were introduced to stop companies and their shareholders from being taxed twice on dividends, aka double taxation. That means when you receive the dividend, you don't need to pay tax again.
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