Tabcorp chief hails wagering investment

Tabcorp chief hails wagering investment

Thursday, October 16, 2014

Tabcorp has continued to benefit from investing in its wagering business, according to David Attenborough, the managing director and chief executive of the Australian gambling company, following a jump in revenue in 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 A$503.9m reported for the same 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.

Following the release of the interim results, Tabcorp’s share price on the Australian Securities Exchange improved by nearly 4% from Aus$3.48 to Aus$3.61.

“In wagering, our investment in recent years in high growth areas such as digital and fixed odds is paying off,” Attenborough said.

“We are achieving strong growth in these areas and the business, as a whole, has positive momentum.”

Tabcorp’s other divisions also performed positively in the first quarter with revenue from its media and international arm increasing by 4.8% to Aus$57.m, gaming services up 2% to Aus$25.1 million and keno growing by 0.4% to Aus$54.3m.

Meanwhile, Tabcorp has also completed the acquisition of the regional ACT government’s ACTTAB gaming business after it initially agreed a deal in July to purchase the company for Aus$105.5m.

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, and ongoing approvals to offer keno and trackside products for the same length of time.

“We welcome ACTTAB into our portfolio and look forward to bringing our skills and capabilities to the ACT market,” Attenborough said. “We intend to enhance the range of products and channels for ACTTAB customers.”

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