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Tabcorp Q3-2013 Results Released
Monday April 29, 2013 : TABCORP Q3-2013 RESULTS RELEASED
Tabcorp Holdings posts decent revenue gains from its Luxbet corporate bookmaking arm.
The Aussie and land sports betting group Tabcorp released its third-quarter trading update Monday, reporting solid contributions from its digital division Luxbet operations.
Digital turnover was up 13.4 percent in the March quarter on the previous corresponding period, in line with the wagering market’s shift to digital technology, driven by consumer preference for mobile transactions, customer convenience and fixed odds expansion.
The release showed Group revenues for the third quarter were up 2.6 percent to A$480.3 million year-on-year, while revenues for the three quarters year-to-date were up slightly less at 2.2 percent to A$1.5152 billion.
The newly established Gaming Services division continued to improve and the Fixed Odds and Luxbet businesses both delivered strong revenue growth.
During the quarter Tabcorp signed an extension with the Queensland government for its licence to operate Keno in the state until 2047. Given that Keno now contributes 16 percent of Group earnings before EBITDA, this was a good move for the Group.
Total wagering revenue rose 7.2 percent in the third quarter, but revenue from wagering operations, which generates the bulk of the company's earnings, was down 4.7 percent, at A$368.6 million.
Turnover declined in the company's retail operations in New South Wales and Victoria on softer trading conditions.
The update comes after the group posted a sharp fall in interim profit.
In the six months to December 31, Tabcorp recorded a net profit of A$72.9 million, a result 61.5 percent lower than the same period last year.
Tabcorp managing director David Attenborough said the group's trading performance was "steady", with third quarter revenue growth broadly in line with the first half.
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