Tabcorp releases first half report

The major Australian betting group Tabcorp paid an interim dividend of 8 cents a share to investors this week, at the same time releasing its fiscal H1 2013-2014 numbers:

* Net profit after tax for the first half was A$74.6 million, up 2.3 percent on the prior period.

* Revenues were up 1 percent to A$1,045.1 million.

* EBITDA came in at A$243.8 million, up 5.4 percent.

Chairperson Paula Dwyer said that progress in digital wagering had made a useful contribution to the results, and that the group’s overall earnings growth, achieved despite a relatively subdued retail environment, was supported by good cost control.

“During the period, Tabcorp also finalised the extension of our Queensland Keno licence and retail wagering exclusivity in NSW,” she said. “These extensions have secured and strengthened Tabcorp’s portfolio of long-dated licences.”

Giving an update on the company’s Supreme Court of Victoria proceedings, Dwyer said that on 20 February 2014, the Supreme Court of Victoria concluded hearing Tabcorp’s claim relating to a payment from the State of Victoria of A$686.8 million.

Tabcorp’s view is that the State’s obligation to make the payment came into existence when it privatised the Victorian TAB and listed Tabcorp on the ASX in 1994, and was triggered on the grant of the new Gaming Machine Entitlements and the new Victorian Wagering and Betting Licence in August 2012.

“We are now awaiting the judgment, which may take some months to be handed down by the Court,” she said.

Dwyer said the company continues to support the need for national wagering regulations.

“The current state-based framework has three key areas where conditions for corporate bookmakers licensed in the Northern Territory are less rigorous than for those operating state-based licences, such as Tabcorp, Dwyer said, detailing the variations as:

* The provision of credit by bookmakers, which is either prohibited or severely restricted in all Australian jurisdictions except the Northern Territory.

* The unequal levels of wagering taxation, which are materially lower for wagering operators licensed in the Northern Territory, compared to operators licensed in other states.

* The offering of enhanced tote odds products by Northern Territory-licensed corporate bookmakers, who are able to offer these products because of the low level of racing product fees and taxes they pay.

“Tabcorp enters its 20th year in 2014. We are well positioned for the future as an integrated gambling entertainment business that has strong and trusted brands, geographic diversification, long-dated licences and a unique multiproduct and multi-channel distribution network,” Dwyer concluded.

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