BUSINESS

Tabcorp full year profit up 14%; GigaMedia loses $1.7m in Q2

TAGs: Echo Entertainment Group, Everest Poker, GigaMedia, Tabcorp

Tabcorp and GigaMedia Ltd.Australian wagering outfit Tabcorp saw its full year profits rise 14% to AU $534.8m, thanks to an extra $79m taken from casino high rollers. If you take away year-to-year fluctuations in win rate and the effect from the spin-off of its Echo Entertainment casino operations, those profit numbers fall to 1.9% and $486.3m. Echo Entertainment also benefited from the spin-off from Tabcorp, reporting a full year revenue bump of 7.4% to almost $1.6b, and a $226m after-tax take home.

Tabcorp’s wagering revenues were up 1% to $1.57b, while earnings were up 4.5% to $220.2m. Fixed odds wagering was a star performer, with revenues climbing 31.7% to $242m. Earnings from continuing operations at TAB retail outlets, Tabaret pokies and Keno lottery were up 5.2% to $562.5m. Turnover via the internet (including Luxbet) jumped 18.6% to $2.36b. Looking forward, Tabcorp hopes for good things from its two recently signed licenses with the state of Victoria – a $60m 10-year Keno deal commencing next April, and a $410m 12-year wagering and betting license that takes effect next August.

GigaMedia Ltd. reported revenues of $8.8m in Q2 2011, down from $10.9m in Q2 2010 and $10.4m in Q1 2011. The result was a core net loss of $1.7m for the quarter, compared to a loss of $5.4m in Q2 2010 and a loss of $975k in Q1 2011. Revenues at FunTown, GigaMedia’s online games operation in Taiwan and Hong Kong, were $6.5m, up from $5.8m in Q2 2010 but down from $7.4m in Q1. The year-over-year increase is credited to the success of new games A.V.A. and Tales Runner, while the quarterly decrease reflects the traditional seasonal dropoff following Chinese New Year. Revenue from Southeast Asia operation IAHGames were $2.3m, down from $3m in Q1 2011. Everest Gaming, in which GigaMedia holds a 40% stake, reported total revenues of $13.7m, including $8.5m from Everest Poker, for a total net loss of $11m in Q2 (and a total loss of $19.6m for the year so far).

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