BUSINESS

Tabcorp gets digital, fixed-odds betting boost

TAGs: Australia, Tabcorp

tabcorp-digital-growthAustralian betting operator Tabcorp says its digital channel was among the “dominant drivers” of the company’s fiscal Q3 results.

Tabcorp’s digital channel reported turnover up 16.8% to AUD 815m (US $638m) in the three months ending March 31. For the fiscal year to date, the digital channel is up 20.1%. Despite these gains, revenue at Tabcorp’s Northern Territory-licensed site Luxbet fell 12.6% to $12.5m due to “unfavorable yield movements.”

Tabcorp’s retail turnover rose a more modest 3.3% to AUD 1.59b. Tabcorp says work is progressing on integrating its retail and digital channels, an approach the company claims will offer customers more touch points than any of its Aussie rivals.

Totalisator betting easily maintained its dominance over its fixed-odds rival, but tote revenue fell 0.8% to AUD 290.9m while fixed-odds rose 31.9% to AUD 105.8m. TAB Sports revenue was down 1.8% to AUD 44.5m due in part to a stellar performance in the previous Q3. The Trackside animated racing business improved 16% to AUD 23.9m while media operations rose 9% to AUID 43.6m on the strength of its international business.

All told, Tabcorp’s wagering and media division contributed AUD 440.6m to the overall revenue pie of AUD 508.7m. The division was up 5.6% from the same period last year, while keno revenue fell 13.8% to AUD 43.9. Tabcorp said some lucky bastards had relieved the company of $6m in keno jackpots and more “disproportionate” numbers may be in the future. The quarter saw the launch of jackpot pooling between NSW and Victoria, with Queensland signing on in fiscal 2016, part of a program to boost keno’s appeal.

The TGS electronic gaming services business was flat at AUD 24.2m. TGS inked two new venues in Q3 and extended the lives of some Victorian contracts from five years to ten. Around 80% of TGS’ Victorian machine base is now locked in until 2022.

Tabcorp CEO David Attenborough celebrated the wagering division’s strength, particularly for maintaining its momentum after a strong 2014 FIFA World Cup performance.

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