Mobile punters lift Tabcorp
Tabcorp reported a net profit of $72.9 million on Thursday for the first six months of the 2012-13 financial year, down 61.5 per cent on the previous corresponding period. The result was skewed by the loss of the right to operate poker machines.
Tabcorp and rival Tatts lost their duopoly to operate poker machines in Victoria - outside of those operated by Crown in Melbourne's Crown casino - in August 2012.
Tabcorp was also obliged to share more of its proceeds from wagering with the Victorian racing industry.
Tabcorp's revenues from continuing operations for the six months to December 31 rose 2.1 per cent to $1.03 billion. Digital turnover in the first half grew 15.9 per cent, encompassing sales via the tab.com.au website and the company's wagering apps for smartphones and tablets.
Wagering via mobile devices accounted for 28 per cent of digital turnover in the first half.
"There's always been a tendency for generation X and Y to be early adopters of technology," Tabcorp chief executive David Attenborough said. "People are getting used to transacting over their phones."
Tabcorp said the continued transfer to digital betting and a soft retail trading environment were reflected in turnover at TAB outlets. NSW retail TAB turnover grew 0.9 per cent to $2.04 billion, and Victorian retail TAB turnover fell 1.9 per cent to $1.57 billion.
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Tabcorp reported a net profit of $72.9 million for the first six months of the 2012–13 financial year and said revenues from continuing operations for the six months to December 31 rose 2.1% to $1.03 billion.
The 61.5% decline in net profit was largely driven by the loss of the right to operate poker machines in Victoria, which skewed the result and reduced earnings compared with the prior corresponding period.
In August 2012 Tabcorp and rival Tatts lost their duopoly to operate poker machines in Victoria (outside the machines operated by Crown in Melbourne). The companies were also obliged to share more wagering proceeds with the Victorian racing industry, which affected their earnings.
Tabcorp's digital turnover grew 15.9% in the first half, driven by sales via the tab.com.au website and the company's wagering apps for smartphones and tablets.
Wagering via mobile devices accounted for 28% of Tabcorp's digital turnover in the first half.
Tabcorp CEO David Attenborough noted that generation X and Y tend to be early adopters of technology and that 'people are getting used to transacting over their phones,' highlighting the shift toward mobile wagering.
NSW retail TAB turnover grew 0.9% to $2.04 billion, while Victorian retail TAB turnover fell 1.9% to $1.57 billion, reflecting the ongoing transfer to digital betting and a soft retail trading environment.
Investors should monitor Tabcorp's digital growth (including mobile wagering share), ongoing impacts from changes to poker machine licensing in Victoria, and retail TAB trends by state, as these factors are shaping revenue and profit outcomes in the company’s updates.
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