Shares in Tabcorp Holdings’ fell almost 5% yesterday, despite the company returning to profit in the year to June 30 from the previous year’s losses caused by a big asset write-down.
The company reported net profit of $521.7 million for the 12 months to June 30 compared with a loss of $164.6 million in the 2008 year.
That was higher than market forecasts of around $485 million, but despite that, the shares fell 35 cents to $7.03, or 4.7%, on the company’s cautious outlook.
Revenue rose 5.6% to $4.17 billion for the year to June.
"The positive revenue performance was driven by solid growth in Gaming, the recovery from Equine Influenza in Wagering and an improved revenue performance in the Casinos division in the second half," the company said in a statement.
"Expense growth was 5.6%. Operational expenses in the company’s existing businesses increased by 4.3%. The growth above this level was driven by the company’s investment in Luxbet.com, the Northern Territory bookmaking business," the company said.
"Normalised" profit, (which seeks to strip out the variations in win rates at the company’s casinos and in 2008, the impact of changes in the Victorian licensing decision), rose 1.2% to $496.2 million, while earnings per share fell 5.1% to 89 cents."
Tabcorp chief executive Elmer Funke Kupper said 2010 was likely to be a tough year for the company.
"We expect that economic conditions will remain challenging in 2010," Mr Funke Kupper said in the statement.
"At the same time, we will need to absorb higher taxes in Queensland and higher racing industry fees in our wagering business.
"In this environment we will continue to focus on the basics to deliver the best possible results."
Tabcorp declared a final dividend of 30 cents per share, taking the full-year payment to 65 cents, compared to 94 cents in the previous year, which included a special dividend.
Meanwhile recovery is the theme at metal basher, Bradken Ltd which yesterday posted a solid rise in annual earnings for the 2009 financial year.
The mining and engineering products manufacturer reported net profit for the year ended June 30 of $64.3 million, up 11% on $58 million for the 2008 financial year.
The market liked the result and rushed the shares, driving them up almost 18% to $6, a rise of 78 cents on the day.
Sales jumped 59% in the 2009 year to $1.209 billion, from $760.3 million for the previous corresponding period.
"The year’s result was a tale of two halves, with strong trading conditions in the first half and the global economic conditions impacting the second half through destocking and order cancellation by customers," managing director Brian Hodges said in the statement.
"The ability to reduce variable costs in line with demand levels is an important feature of Bradken’s business, allowing it to maximise gross margins in tough economic times."
Bradken said it expected 2010 profit levels would be similar to the previous period, weighted towards the second half.
"We expect to continue experiencing tough trading conditions in industrial markets and subdued capital goods demand from OEMs (original equipment manufacturers) in the first half, improving in the second half.
"Sales revenue for Bradken’s mining products division increased by 14% year-on-year, with growth in all product groups, particularly the mineral processing business.
"After a strong start to the year, volumes in the second half were impacted by customer destocking due to the global economic conditions and the lack of expansion projects affecting the plate and block business," the company said on Thursday.
"Gross margins held up, influenced by reduced costs."
The rail division delivered sales growth of 19% due to strong market demand for freight wagons.
Bradken’s industrial division achieved a sales revenue increase of 3%, although the underlying industrial business was down 13%, reflecting the wide ranging slowdown in the industrial market.
But no joy for shareholders from this cautious confidence. Annual dividend of 13 cents a share took the total for the year to 23 cents, down 38% on the 37 cents a share paid in 2008.
Alumina Ltd was another stock rushed by investors yesterday after reporting what was a better than anticipated outcome to a difficult first six months of 2009.
The shares rose almost 10%, or 16 cents to $1.795 after reporting an 86.3% fall in first half profit for the six months to June.
Despite saying that it remains cautious about the outlook for aluminium demand in the rest of the year and into 2010, the market chose to look at the fact that the result wasn’t a disaster.
The company, which is a 40% partner in Alcoa World Alumina & Chemicals (AWAC) group, said net profit for the first half of 2009 was $6 million, down from $43.8 million in the previous corresponding half year,
The company made an underlying loss for the period of $14.6 million, compared to a profit of $151.7 million previously.
"During this period, the average aluminium price was below $1,400 per tonne.
"This had a major impact on margins but was partially offset b
