Tabcorp announces 2016 half year results

Australia betting giant Tabcorp has reported net profit after tax of $81.9 million for the half year ended Dec. 31, 2015, down 33.1 percent from the same period 2014, according to a recent filing to the Australian Stock Exchange.

The wagering behemoth announced earnings per share (EPS) of 9.9c per share, down 38.1 percent, and results were impacted by significant items after tax of $15.6 million in 1H16, compared to a one-off tax benefit of $31.5 million in the prior period.

TAB Racing revenues were at $895.2 million, up 2 percent, with fixed odds driving growth at $256.8 million, up 19.6 percent. There was a decline of totalizator revenues, which were at $638.5 million, down 3.7 percent.

Throughout the period, ACTTAB was successfully integrated, Victorian thoroughbred media rights were secured for another five years, and Sun Bets, will be launched with News UK in Y16Q4.

Media revenues were down 0.6 percent, at $85.8 million.

Revenues from the group’s gaming services business, TGS, were up 4.3 percent to $52.9 million and there are now 9,550 gaming machines contracted, Tabcorp adds.

“We made good progress against our strategy in the half, executing a number of initiatives that position the business for further growth,” said Tabcorp Managing Director and CEO, David Attenborough. “Our Wagering and Media business reported increased revenues from racing, which remains the core of our business. This was despite increased competition. We have continued to invest in growth initiatives by delivering new products such as Partial Cash Out, channel enhancements and the expansion of international vision and pooling”.