Sports back betting hike for Tabcorp
Australia's largest wagering operator said it also continued its dominance of sports betting with strong revenue growth for the March quarter despite aggressive competition from the likes of Sportingbet and Tom Waterhouse.
"Tabcorp has continued to deliver a steady trading performance, with third quarter revenue growth in 2013 broadly in line with the first half," Tabcorp's chief executive, David Attenborough, said.
Its stock jumped 5¢, or 1.5 per cent, to close at $3.39 on Monday.
Total revenue from wagering - which accounted for 77 per cent of March quarter revenue - grew 7.7 per cent, but the new joint venture arrangement governing its Victorian licence means more of this revenue now goes to the state.
As a result, Tabcorp's share of wagering revenue dropped 4.7 per cent compared to the previous third quarter to $368.6million. This year, NSW will be the focus as it lobbies to keep its state licence exclusive.
Strong growth in its fixed odds business and Luxbet, up 28 per cent to a combined $113.3 million - offset softer results from its retail channels in NSW and Victoria. "NSW and Victorian retail channels experienced a decline in third quarter turnover ... impacted by softer trading conditions, particularly in Victoria," Tabcorp said.
Tabcorp said it continued to improve market share in the fixed odds/sports betting market last year with 315,000 active customers. This is well ahead of rivals like Tatts with 230,000 customers, and Sportingbet with 172,000 customers.
Tabcorp said its share of the sports betting market grew from 34.6 per cent to 35.2 per cent in the 2012 financial year, but Merrill Lynch warned recently Tabcorp's loss of the rugby league sponsorship to Tom Waterhouse indicates the company's profit margins may be under threat.
Keno was another strong performer during the March quarter with revenue rising 16 per cent to $51.6 million thanks to the addition of the company's Victorian Keno operation in April last year.
Tabcorp has announced its Queensland Keno licence will be extended from 2022 to 2047 for a $20 million payment.
Tabcorp last August lost its biggest earner, Victoria's poker machine duopoly, and said it is planning to offset the loss with the new Keno licence and poker machine services business, TGS, which reported third quarter revenue of $24.1 million and year-to-date revenue of $61.9 million.
Frequently Asked Questions about this Article…
Tabcorp reported overall gaming revenues rose 2.6% in the third quarter to $480 million. The market reacted positively: the stock closed at its highest level since June 2011, jumping 5 cents (1.5%) to $3.39.
Wagering made up 77% of March quarter revenue and wagering revenue grew 7.7% in the period, making it the main driver of Tabcorp’s quarterly growth.
Although wagering revenue grew, a new joint‑venture arrangement governing Tabcorp’s Victorian licence means more wagering revenue now goes to the state. As a result Tabcorp’s share of wagering revenue dropped 4.7% to $368.6 million compared with the prior third quarter.
Tabcorp said it continued to dominate sports betting with strong revenue growth despite aggressive competition from Sportingbet and Tom Waterhouse. Its fixed‑odds business and Luxbet grew 28% to a combined $113.3 million, and Tabcorp reported 315,000 active customers (versus Tatts’ 230,000 and Sportingbet’s 172,000). Its sports betting market share rose from 34.6% to 35.2% in the 2012 financial year.
The article notes Merrill Lynch’s warning that Tabcorp’s loss of the rugby league sponsorship to Tom Waterhouse could indicate pressure on the company’s profit margins, even though Tabcorp still shows market share gains.
Keno revenue rose 16% in the March quarter to $51.6 million, helped by Tabcorp adding the Victorian Keno operation in April last year. Tabcorp also announced its Queensland Keno licence will be extended from 2022 to 2047 for a $20 million payment.
Tabcorp lost Victoria’s poker‑machine duopoly last August, which was its biggest earner. The company is aiming to offset that loss through the new Keno licence and its poker machine services business, TGS, which reported third‑quarter revenue of $24.1 million and year‑to‑date revenue of $61.9 million.
Yes — Tabcorp said NSW and Victorian retail channels experienced a decline in third‑quarter turnover, particularly in Victoria, due to softer trading conditions. The company said NSW will be a focus as it lobbies to keep its state licence exclusive.
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