Tabcorp lifts Q1 revenue

Gaming group warns of tough external trading conditions as earnings lift.

Tabcorp Holdings (TAH) has posted a lift in first-quarter revenue despite warning of tough external conditions.

In a trading update to the Australian Securities Exchange, Tabcorp said group revenue for the first quarter of fiscal 2014 was $503.9 million, compared with $488.9 million in the first quarter of fiscal 2013.

Tabcorp chief executive officer David Attenborough said the revenue growth "demonstrates the resilience of Tabcorp's businesses in tough external trading conditions".

"We remain focused on continuing to leverage the benefits of our multi-channel distribution strategy and strengthening our customer proposition," Mr Attenborough said.

Wagering revenue was $385 million in the quarter, a 0.1% rise compared with $384.6 million in the previous corresponding period.

Tabcorp said the prior year comparison for this business is affected by the change to the Victorian Wagering and Betting Licence terms which commenced on August 16, 2012.

Under the new licence terms, Tabcorp's share of its joint venture with the Victorian Racing Industry (VRI) fell from 75% to 50%.

But total wagering revenue including the VRI's interest grew 5.4%, Tabcorp said.

Tabcorp's media and international business grew 10.1% to $54.5 million, from $49.5 million, "reflecting the successful growth in the export of racing and subscriptions," the company said.

But Keno revenue grew 0.4% to $54.1 million, due to the "soft retail trading conditions being experienced across New South Wales, Victoria and Queensland".

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