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Great performance For Tabcorp Digital
Thursday August 7,2014 : MOBILE BETTING BOOSTS TABCORP ANNUAL PERFORMANCE
Digital betting turnover up 18 percent to A$2.9 billion...54 percent of it from mobile channel.
The Australian retail and online betting giant Tabcorp reports that its digital division - and especially the mobile channel - have been the stars of its annual performance for 2013-2014, alongside fixed odds betting.
The company reported highlights that include:
* Digital betting turnover up 18 percent to A$2.9 billion, with 54 percent coming from the mobile channel - a y-o-y increase of 35 percent;
* Mobile betting during the World Cup football accounted for around 70 percent of digital turnover;
* In total, Tabcorp generated A$25 million in revenue from the World Cup;
* Tabcorp's net profit after tax rose 2.6 percent to A$129.9 million in the year to June 3;
* EBITDA from continuing operations before significant items A$486.1 million, up 4.8 percent;
* Revenues up 1.8 percent to A$2,039.8 million;
* Operating expenses rose by 2.8 percent to A$433.4 million;
* Luxbet (online and mobile) revenues up 22.5 percent to A$47.9 million;
* Fixed Odds revenues up 26.5 percent to A$511.5 million, made up of Fixed Odds racing revenues of A$322.9 million - up 37 percent, and Fixed Odds sports revenues of A$188.6 million, up 12.7 percent.
Tabcorp CEO David Attenborough said that his company's success in the digital betting field was no accident, and that the mobile channel continues to be the key driver for growth.
He revealed that Tabcorp had recruited experts from a range of industries to work on mobile design and to get products to market faster.
However, he pointed out that whilst digital betting is growing, retail activity in pubs, clubs and TAB stores continues to fall, and that needs to be addressed.
Attenborough said Tabcorp was aiming to integrate digital betting with retail outlets like TABs, pubs and clubs, by offering "non-betting" benefits to customers doing their digital betting in pubs or clubs. A pilot program was being assembled for launch later this year, when more detail would be provided, he said.
Discussing the overall performance of the group, Attenborough said:
“The Group’s performance in FY14 demonstrates the benefits of being diversified across four businesses, with market-leading brands and a unique multi-product, multi-channel distribution model.
“The strong performance of our Wagering business was driven by excellent growth in Fixed Odds and Digital wagering."
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