Tabcorp Posts Mixed Revenue Results

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Tabcorp Holdings, an Australian Gambling Operator has posted a modest profit in H1 fiscal. The results look encouraging for the company as it witnessed a sluggish wagering and unsatisfactory performance of the gaming service division.

The figure was released on Tuesday for the final six months of 2019. The overall revenue was increased by 4.4% on a year on year basis. The total revenue posted was AU$2.91bn. The earnings for the same period were AU$596.5bn which again increased by 2.1% on year on year basis.

The net profit after the tax saw an increase of 2.9% to AU$213.5mn.

Tabcorp is still trying to integrate the business of the Tatts Group which they acquired and the erstwhile lottery. David Attenborough assured the investors that Tabcorp is in the final phase of the complex integration process. He also promised that the expected synergies are not far away.

The lottery and keno division posted a solid 12.4% rise in the H1 sales to AU$1.58bn. The earnings grew by 16% to AU$295mn. The digital turnover for the lottery rose by 39.8% thanks to the omnichannel approach of Tabcorp. The retail sales grew by a mere 5.2%. In short, digital sales are 26.7% of the lottery sales up from 15.6% within two years. There were mega jackpots including AU$150mn Powerball Prize.

This was a great push for the lottery. The Keno revenue managed to rise by 1%.

On the other hand, the Wagering and the Media division of Tabcorp continue to struggle. The revenue for this division fell by 3.7% to AU$1.18bn. The earning was decreased by 7.8% to AU$233.8mn. The company suffered in this division as both digitals fell by 3.9% and the retail by 9%.

The Gaming Service Division of Tabcorp saw major dip as well. The revenue fell by 4.4% to AU$149mn. The earnings slipped by 14% to AU$66mn. This has been called an unsatisfactory performance by Tabcorp and the company is expected to have a review of the same.

Tabcorp was, however, quick to justify the falling revenue. The company clarified that FIFA 2018 was more of a push last year. Also, there are users migrating from Tatts to TAB membership. Tabcorp said that the fully integrated gaming platform may be available by the end of this fiscal year.

The company claims a strong customer response for the ‘Long May We Play’ brand position. TAB also became the exclusive betting partner for 1200 NSW venues. The new venue mode in the app has also helped the digital revenue, claimed the company.

Source: https://calvinayre.com/2020/02/18/business/tabcorp-wagering-struggles-tab-ubet-integration/

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