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Good Mobile Results For Tabcorp
Friday August 9,2013 : MOBILE GAMBLING GOOD FOR TABCORP
H2-2013 results show 13.6 percent rise in digital operations, driven by mobile division
Mobile gambling contributions were the star of the H2-2013 results for Tabcorp released Friday, with digital wagering turnover up 13.6 percent to A$2.45 billion over the 2012/13 financial year, with fixed odds betting also delivering good results.
Mobile betting accounted for 43 percent of Tabcorp's digital turnover in the second half of fiscal 2013 - up from 28 percent in the first half.
"What we're seeing is less usage of on-line classical desktop computers and more usage of tablets and mobile phones as people's habits change," Tabcorp chief executive David Attenborough said.
Tabcorp said its TAB iPhone, iPad and Android apps, which have been downloaded more than 900,000 times, were upgraded during the year.
The company had introduced a "world-first" app enabling a customer to watch a race and bet on it, all on the same tablet screen.
Attenborough said strengthening Tabcorp's offerings to customers in the digital wagering sector would be a key focus in fiscal 2014.
Tabcorp also aimed to enhance its kenos lotteries business through product and self-service expansion and strengthen its poker machine services business by initial expansion into NSW.
The company reported a net profit of A$127 million for the 2012/13 financial year, down 63 percent on the profit of A$340 million in the prior year, but Management hastened to explain that the numbers were skewed by the expiry in August 2012 of the duopoly licence Tabcorp shared with rival Tatts Group to operate poker machines in Victoria .
Attenborough said that despite the fall in headline profit, it had been a successful year for the company as it repositioned its businesses.
The company numbers were also affected by changes to Tabcorp's Victorian wagering and betting licence under which it now shares more proceeds with the Victorian racing industry. The decommissioning of the Victorian Tabaret gaming business, following its licence expiry on 15 August 2012, had an impact, too, and losses from discontinued operations came in at A$21 million
In addition, Tabcorp recorded an A$18.6 million impairment charge on its Victorian keno licence due to slower-than-anticipated take-up by customers.
EBITDA from continuing operations before significant items amounted to A$463.9 million, up 9.5 percent
“Tabcorp has had a successful FY13, while managing significant change to our business portfolio and navigating challenging external trading conditions, Attenborough said.
“FY13 was the first year of the new Wagering and Gaming licence structure in Victoria, which we knew would have an impact on Tabcorp’s earnings and operations. We managed the transition successfully and our revenue initiatives and sharp focus on expense management delivered strong EBITDA growth.
“We have also achieved greater licence longevity through the in-principle agreement to extend NSW retail wagering exclusivity to 2033 and our Queensland Keno licence is to be extended to 2047.
“A key focus in FY14 will be further strengthening our customer proposition in the fast growing and competitive digital wagering sector."
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