Tabcorp reports gains amid review

 

Tabcorp reported a 2.6 percent rise in revenue for the January-March quarter to A$480.3 million ($495.9 million), with results in its core wagering business hit by a cut in its share of profits from betting pools in Victoria to 25 percent from 50 percent when it extended its license there for 12 years. The company now awaits the results of a review of its exclusive license for the pools in New South Wales for which PricewaterhouseCoopers has completed a report. The company paid New South Wales A$1 billion when it went public in 1998 for a 99-year license, with the exclusivity to be reviewed by June 22, 2013. 

Analysts expect the price of a 15-year extension could run A$50 million to A$100 million; it paid Victoria A$410 million. So far other bookmakers have been reluctant to express public interest in competing for the New South Wales rights given a shift to fixed odds, online and mobile betting and the cost of setting up a new retail network. Sportingbet and Tom Waterhouse both denied interest. The betting pools accounted for a third of Tabcorp’s revenue in the first half of the fiscal year, at A$2.04 billion.