Tabcorp profit down 63 percent

Tabcorp’s net profit for the year ended June 30 declined 63 percent to A$126.6 million ($116.6 million) from a year earlier even though total revenue rose 2 percent to A$2 billion. The company was hit by a shift last August in its revenue split with Victoria racing groups to 50/50 from 75/25. As a result, revenue in its core wagering business slipped 4.8 percent to A$1.56 billion and earnings before interest and tax (EBIT) were down 26.9 percent to A$167.3 million. However, revenues from fixed odds betting rose 25.8 percent to A$404.2 million.

Tabcorp’s new gaming services business generated EBIT of A$37.5 million on revenue of A$86.3 million. The company wrote down the value of the license for its new keno business in Victoria by A$18.6 million, but said it would refine its sales focus and develop new products there to try to improve results.