(Adds context, details on expenses)
Feb 8 (Reuters) - Australian diversified gambling operator Tabcorp Holdings Ltd TAH.AX said on Thursday that half-yearly profit fell more than 20 percent, hurt by a spike in expenses for the period.
Underlying net profit came in at A$82 million ($64.1 million) for the six months ended Dec. 31, compared with A$102.7 million a year ago, the horse-race betting company said. Analysts had forecast A$89 million.
The statutory net profit fell about 58 percent to A$24.6 million due to significant items including costs from the acquisition of Tatts Group, Tabcorp said in a statement.
The company said operating expenses for its Wagering and Media business, which is its key breadwinner, rose about 4 percent.
Tabcorp was expected to complete a marathon $4.7 billion takeover of lotteries operator Tatts at the end of the six-month period after lengthy delays gaining regulatory clearance. deal, the companies' third attempt at a tie-up, was designed to create a gambling powerhouse at a time of rising competition from foreign largely online rivals such as Britain's William Hill WMH.L and Ireland's Paddy Power PPB.I .
Tabcorp said Sun Bets, its British-focused online betting venture business, would remain under review after it clocked a wider loss in the interim period.
The company declared an interim dividend of 11 cents per share, compared with to 12.5 cents from a year ago. ($1 = 1.2788 Australian dollars)