Updates: Tabcorp’s 3rd Revenues Up

By Glenn Dyer | More Articles by Glenn Dyer

Gambling giant Tabcorp Holdings yesterday has reported a 5.4% rise in normalised net revenue for the March quarter.

That saw revenue growth for the first nine months of the financial year rise 3.9%, to $3.32 billion.

The company said that normalised net revenues for the three months ended March 31 was $1.06 billion, as all three business divisions achieved positive revenue growth.

The update sent the company’s shares up 2.3%, or 17c, to $7.41.

Casinos saw revenue growth of 5.9%, wagering’s just 2.6% and gaming jumped 8.6% as more money was put through poker machines.

Tabcorp said the jump in gaming came from a 7.4% rise in "Victorian gaming revenues compared to a weaker third quarter in the previous financial year, and the business continued to grow market share. Keno recorded strong revenue growth, and the business is benefiting from the expansion of distribution and the roll out of self service technology."

The company said the big wet hit wagering and casino revenues in January and early February with abandoned race meetings and reduced field sizes due to the state of the tracks.

And in Queensland, the January floods impacted significantly on the performance of Brisbane’s Treasury Casino and Hotel during the quarter.

Sydney’s Star City Casino grew normalised revenues by 11.3% and the other Queensland casinos recorded positive revenue growth, "driven by continued growth in gaming and the international VIP business, and good management of disruption from construction".

Tabcorp chief executive Elmer Funke Kupper said in a statement that trading in the third quarter was pleasing, in light of the Queensland floods.

In better news, last month Tabcorp was awarded Victoria’s new exclusive 10-year Keno licence which will start in April 2012.

Tabcorp said its plans to demerge its casinos business was progressing with shareholders to vote on it in June this year.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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