Digital operations help drive Tabcorp success

Australian gambling powerhouse Tabcorp reported Wednesday that fixed odds and digital wagering were the main contributors to its 2015 full year results, which recorded a 157.5 percent rise in net profit after tax to A$334.5 million.

This comprised NPAT from continuing operations before significant items of A$171.3 million, up 14.7 percent; NPAT from significant items of A$163.2 million relating to income tax benefits; 1 Statutory Earnings Per Share of 42.4 cents per share, up 146.5 percent; full year dividend 20 cents per share; and a special dividend of 30 cents per share, paid in March.

Management said that FY16 target dividend payout ratio will increase to 90 percent of NPAT before amortisation of the Victorian Wagering and Betting Licence.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) before significant items reached A$508.1 million, up 4.5 percent on  Revenues of  A$2,155.5 million, up 5.7 percent. Operating expenses were up A$458.6 million.

Operational highlights included:

* Strong performance by Wagering and Media business, especially in Fixed Odds and Digital Wagering;

* ACTTAB acquisition completed, strengthening Wagering and Media portfolio, with integration on track ;

* Keno and Gaming Services well positioned for FY16, following new sign-ups in TGS and Keno brand relaunch;

* Agreements in place for Victorian and NSW thoroughbred media rights.

David Attenborough, managing director and CEO of the group, said:

“Tabcorp’s 2015 financial performance demonstrates the progress we have made in the delivery of our multi-channel distribution strategy and our focus on customers, products and brands. Wagering and Media achieved strong revenue and EBITDA growth in FY15, with customers responding to our integrated retail and digital offer. This business continues to lead the market on the back of our product and channel innovations.

“Keno is undergoing a brand and product transformation, which commenced in June. Initial results have been pleasing and we are well placed to continue to benefit from investments we are making in the network.

“Our businesses generated more than $1.2 billion in gambling taxes and racing industry funding in FY15, highlighting the value that Tabcorp’s operations provide to stakeholders.”

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