Australian gaming and betting giant Tabcorp Holdings reported a sharp decline in earnings for the six months ended 31st December, precipitated by the loss of its machine gaming duopoly in the state of Victoria.
Net profit was down 61.5% year on year on a 26% drop in total revenue to A$1.16 billion.
Earnings from the group’s wagering business fell 28% year on year. Retail TAB turnover also was down in New South Wales and Victoria. But turnover in online wagering was up 16% to $1.2 billion. Earnings from the media division, which owns Sky Racing, were up 0.4% to $27.5 million.
In all, revenue from continuing activities rose 2.1% to $1.03 billion.
Tabcorp and rival Tatts Group lost their duopoly over Victoria’s 27,500 club- and pub-based “pokies” at the end of calendar 2011. The company also spun off its casino business that year. The casinos, which include Sydney’s monopoly property, The Star, now trade under the ownership of ASX-listed Echo Entertainment.
However, the Victorian government has allowed Tabcorp to keep its exclusive wagering license for another 12 years, and the company hopes NSW will allow it to do the same. But the structural change weighed heavily on first-half results, the company said, adding that it is focused on controlling costs heading into the second half.
The group plans to pay an interim dividend of 11 cents.
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