TabCorp reports growth in digital turnover

TabCorp reports growth in digital turnover

Australian casino gambling and entertainment group TabCorp Holdings Limited has released its financial results for the six months to the end of December showing that its total revenues rose by 2.1 percent year-on-year to AUD$1.03 billion ($1.06 billion).

TabCorp revealed that half-year earnings from continuing operations before interest, tax, depreciation and amortisation increased by 2.6 percent year-on-year to AUD$231.3 million ($238.94 million) although a 48.9 percent rise in depreciation and amortisation charges to AUD$70.9 million ($73.24 million) largely as a result of its Victorian wagering and betting licence and TGS business saw six-month earnings before interest and tax drop by 9.8 percent when compared with the same period in 2011 to AUD$160.4 million ($165.69 million).

The Victorian firm stated that the half saw its operating expenses escalate by 9.7 percent year-on-year to AUD$19.4 million ($20.04 million), which included AUD$12.4 million ($12.81 million) in costs associated with its TGS and Victorian keno start-up businesses, while it additionally incurred a one-off charge of AUD$4 million ($4.13 million) in starting new wagering brands and its TAB.com.au website.

All of this saw TabCorp report a net profit after tax for the half of AUD$72.9 million ($75.28 million), which included a loss from discontinued operations of $21.6 million ($22.31 million) and a continuing operations before significant items yield of $71.6 million ($73.93 million).

“Our key focus during the first half has been on successfully transitioning to the new gambling industry structure in Victoria and investing in those markets and products that can deliver growth,” said David Attenborough, Managing Director and Chief Executive Officer for Melbourne-based TabCorp.

“Despite the challenges associated with significant change and soft external consumer trading conditions, TabCorp again demonstrated its capacity to grow. The revenue growth in the half shows that customers continue to respond to the investments we are making in our products and channels including ongoing innovation in digital.

“Our operating expenses for fiscal year 2013 have deliberately been weighted towards the first half in line with our strategic priorities. Therefore, in the second half, growth in operating expenses is expected to be around two percent.”

TabCorp stated that six-month digital turnover grew by 15.9 percent year-on-year to AUD$1.25 billion ($1.29 billion) and encompassed sales through TAB.com.au and its iPhone, iPad and Android wagering apps. Market share also climbed with the firm estimating that it now holds 28 percent of the Australian digital wagering sector with betting over a mobile device now accounting for 28 percent of its digital turnover.

“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,” said Attenborough.

“Resolving the uncertainty relating to New South Wales wagering retail exclusivity and securing the TVN media rights remain priorities. The first-half revenue growth continued through January of 2013.”