Following the demerger of Tabcorp Holdings’ casino division from its wagering, gaming and keno business, the casino business will be known as Echo Entertainment Group Ltd. Tabcorp made the announcement today, saying that the new corporate entity will operate four premier casino and entertainment destinations in Australia: Star City in Sydney, Jupiters on the Gold Coast, Treasury in Brisbane and Jupiters in Townsville.

The Wagering, Gaming and Keno divisions will remain as Tabcorp Holdings Ltd. The current CEO of the casino division, Larry Mullin, will become Chief Executive and Managing Director of Echo Entertainment Group when the proposed demerger is effected. The new company will be a large Australian Securities Exchange (ASX) listed entity.

Mr Mullin said the creation of a new name and brand signals a transformation of the four casino properties into a total entertainment group. “From the demerger process there will be a distinctive new business that promises to provide a new level of leisure and entertainment within first class casinos. We are in the process of delivering a compelling new customer experience in each of our markets underpinned by our $960 million expansion of Star City in NSW and proposed $625 million expansion of our three Queensland casinos.”

Tabcorp’s Casinos division generated revenue of $1,372 million in FY2010, with EBITDA of $360 million. In the first half of the 2011 financial year, the casinos business performed well, with revenue growth of 5.7% and EBITDA growth of 5.2%. The proposed demerger will create two market leading companies able to pursue their individual growth and investment strategies. Subject to regulatory approval, Tabcorp aims to issue a scheme booklet in April/May 2011 and seek the approval of shareholders for the proposed demerger in June 2011. The demerger is proposed to be implemented by 1 July 2011. (E-03.23.11)

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