Tabcorp ‘cements’ market position through ACTTAB acquisition

Tabcorp ‘cements’ market position through ACTTAB acquisition

Friday, October 17, 2014 Totally Gaming

Tabcorp’s acquisition of the Australian Capital Territory (ACT) ACTTAB gaming business will “cement” its leadership in the country’s wagering market, according to the gambling company’s general manager of corporate affairs, Nicholas Tzaferis.

Earlier this week, Tabcorp completed the acquisition of ACTTAB after it had initially agreed a deal in July to purchase the regional government’s business for Aus$105.5m (€72.3m/US$92.7m). 

Under the deal, Tabcorp will receive a 50-year exclusive totalisator licence as well as a sports bookmaking licence for an initial term of 15 years with additional rolling extensions to take the arrangement through to 50 years, plus ongoing approvals to offer keno and trackside products for the same length of time.

“ACTTAB is a natural fit for our business and cements our leadership in Australian wagering – we now own the New South Wales, Victorian and ACT TAB businesses,” Tzaferis told TotallyGaming.com

“We have acquired long-life licences in totalisator wagering, sports bookmaking, keno and trackside (animated racing). We look forward to bringing our skills and capabilities to the ACT market.”

The acquisition will further boost business at Tabcorp, which yesterday (Thursday) also reported a jump in revenue during the three months through to September 30. 

Tabcorp posted total revenue of Aus$537.4m (€368m/US$470m) in the first quarter of the 2014-15 financial year, a 6.6% increase on the Aus$503.9m reported for the corresponding period last year.

The firm’s wagering business continued to be the main source of income, generating Aus$415.9m in revenue during the quarter – an 8% increase on the previous year.

The company highlighted encouraging performances in racing and sport and underlined the positive impact of the Fifa World Cup national team tournament.

Tzaferis added: “Tabcorp has started FY15 well, with group revenue growth of 6.6% and growth in our core wagering business of 8.0%. In wagering, we had a good period across both racing and sport.

“We had good growth in our digital channel (up 21%) and fixed odds products (up 32%), but the business as a whole has good momentum. We have been investing in areas such as digital wagering, fixed-odds products and our TAB Rewards loyalty programme and customers are responding.”

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