(Reuters) - Australia’s Tabcorp Holdings Ltd (TAH.AX) said it is in discussion with with News UK to exit underperforming wagering and gaming joint venture Sun Bets.
The horse-race gambling house had announced a strategic review of the business last year following challenging trading conditions.
The Sun Bets unit had recorded a core earnings loss of A$22.5 million ($17.1 million) in the first half.
Melbourne-based Tabcorp has started consultation with Sun Bets employees regarding the proposal, it said in a statement.
“Discussions remain ongoing and an agreement has not been reached at this stage,” Tabcorp said in a statement.
The firm reported a larger-than-expected dip in half-yearly profit in February as it struggled with online competition, triggering its biggest daily share price fall in five years.
Reporting by Aditya Soni in Bengaluru; Editing by Stephen Coates