Australian firm reports half-year results showing a 2.6 percent rise in revenues while earnings drop four percent with a 2.9 percent increase in expenses.
Tuesday 23rd February 2010
Australian gambling and entertainment group TabCorp Holdings Limited has released its financial results for the final six months of 2009 showing a 2.6 percent year-on-year increase in revenues to $1.8 billion.
Although the Melbourne-based firm reported a 0.8 percent year-on-year rise in net profits after tax for the six-month period of $228 million, its earnings before interest and tax dropped four percent to $380.8 million while expenses rose 2.9 percent.
TabCorp was helped by its wagering business, which reported a 1.4 percent year-on-year rise in earnings before interest and tax of $127.4 million. In addition, earnings before interest and tax from its gaming business increased 0.7 percent from the same period in 2008 to $125.3 million while its casino operation saw a 10.9 percent year-on-year drop in earnings to $127.6 million.
“Overall, this is a sound result in variable economic conditions and a difficult regulatory environment,” said John Story, Chairman for TabCorp.
“The company is progressing initiatives and investments in each of the operating divisions that are showing promise and provide a good foundation for growth in the coming years.”
TabCorp stated that its wagering business saw expense growth of 2.2 percent year-on-year while revenues from its fixed-odds betting operation rose 23.3 percent assisted by ‘very solid online turnover growth’ including LuxBet.com of 37.8 percent.
“We expect conditions to remain somewhat uncertain for the remainder of the 2010 financial year as government stimulus measures are wound down and higher interest rates affect discretionary income,” said Elmer Funke Kupper, Chief Executive Officer for TabCorp.
“In this environment, we will maintain our current focus on operational performance and deliver the key investment programmes we have underway.”
