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Tabcorp fiscal Q1-2015 results

Wednesday October 15,2014 : SOLID Q1-2015 GROWTH AT TABCORP
 
Revenues up 6.6 percent year-on-year in first quarter of fiscal 2015.
 
Tabcorp Holdings has posted a solid set of fiscal Q1-2015 results, with digital interests again turning in a sterling performance.
 
Group revenues for the three months to 30 September 2014 were A$537.4 million, up 6.6 percent on the prior corresponding period, with the Wagering division continuing to build on momentum established in FY14 by delivering quarterly growth of 8 percent, thanks to good performances in both racing and sport.
 
Total Wagering turnover of A$3,004.8 million was up 3.6 percent.
 
“Tabcorp has started the 2015 financial year well. We are seeing the benefits of targeted investment in our channels and products,” managing director and CEO David Attenborough reported.
 
“In Wagering, our investment in recent years in high growth areas such as digital and fixed odds is paying off. We are achieving strong growth in these areas and the business, as a whole, has positive momentum.”
 
Fixed odds products were again a driver of Wagering revenue growth, with revenues up 32.1 percent. This was supported by product expansion and a strong yield performance. The positive trading was also boosted by the Soccer World Cup, with A$25.2 million in revenues, of which A$10.3 million was in FY15.
 
Totalisator betting was again adversely impacted overall by the growth of Fixed Odds betting on racing, particularly for Win and Place bets, and a reduction in low-margin premium customer volumes. Totalisator trends, however, did improve relative to FY 2014, with Q1-2015 revenues down 3.2 percent in NSW and 2.9 percent in Victoria, compared to declines of 6.2 percent and 6.4 percent respectively in FY14.
 
Online and mobile operations at Luxbet continued to impress, with revenues up 28.8 percent, supported by strong turnover growth and continued yield improvement.



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