Business Description:
Tabcorp Holdings Limited (TAH) offers a range of gambling and entertainment products. TAH's major business units include Wagering, Gaming, and Keno. Customer brands include TAB, Tabaret, Keno, Luxbet, TAB Sportsbet, Tabcorp Gaming Solutions, Sky Racing and Sky Sports Radio.

Strategy Analysis:
TAH´s key strategic initiative in the next year will be directing capital and resources to maintaining the strong off-course and online retail distribution network in Victoria and NSW. Further research, development and roll-out of the self service technology and application software will be implemented, which will assist in lowering operating costs. The company will also continue establishing the Tabcorp Gaming Solutions and Luxbet businesses. We believe the knowledge and expertise, TAH has gained rolling-out Trackside in Victoria, will be leveraged to successfully to grow the product within the NSW market during FY12 and FY13. The expansion of Trackside and the company´s media operations are major strategic growth opportunities. Through reciprocal arrangements, Sky Racing´s international operations is responsible for all imported racing content and co-mingling of wagering pools with operators in Singapore, South Africa and New Zealand. Tabcorp Holdings reported NPAT up 14% to $534.8m for the year ended 30 June 2011. Reported NPAT reflects the actual win rate in the VIP Rebate Business of the Casinos division and one-off demerger related items. Revenues from ordinary activities were $4.47bn, up 6% from last year. Diluted EPS was 80.4 cents compared to 77.0 cents last year. Net operating cash flow was $658.1m compared to $701.2 last year. The final dividend declared was 19 cents, taking the full year dividend to 43 cents. Looking ahead, the Company reported it plans to launch Victorian Keno in April 2012 and looks forward a smooth transition to the new Victorian Wagering and Betting Licence in August 2012. Tabcorp intends to target a dividend payout ratio of 50% of NPAT in FY12 and 80% of NPAT in FY13.