TabCorp talks up future after 62% slide
Gaming company Tabcorp says its revenues are on the rise after suffering a 62 per cent slide in first-half net profit.
Tabcorp’s net profit fell to $72.9 million in the half year to December 31, from $189.3 million in the previous corresponding period.
Revenue dropped 26 per cent to $1.2 billion.
The drop in statutory earnings reflected major changes to the wagering and keno operator’s businesses, and included a $21.6 million loss from discontinued operations.
Based on its continuing operations, Tabcorp’s net profit before significant items fell 24.3 per cent to $71.6 million.
However, earnings before interest, tax, depreciation and amortisation and significant items rose 2.6 per cent to $231.3 million.
Revenues also rose 2.1 per cent.
Tabcorp’s earnings were affected by it no longer being part of a duopoly involved in the operation of poker machines outside of Melbourne’s Crown casino as of last August.
Tabcorp also demerged its casino business in 2011.
However, the Victorian government has allowed Tabcorp to keep its exclusive wagering licence for another 12 years, and the company hopes that the NSW government will allow it to do the same in that state.
Chief executive David Attenborough said first-half revenues had continued to grow during January.
‘‘We have a clear focus in the second half on strengthening our digital channels, expense management and executing growth opportunities relating to Fixed Odds, PGI, Keno and TGS,’’ he said in a statement.
‘‘Resolving the uncertainty relating to NSW wagering retail exclusivity and securing the TVN media rights remain priorities.’’
Tabcorp maintained its fully-franked interim dividend at 11 cents a share.respond to the investments we are making in our products and channels, including ongoing innovation in digital."