A slow start to the 2005/2006 financial year for Australia’s largest gambling company has been blamed on various factors. After previously forecasting solid growth of Earnings per Share (EPS), targeting double digits, Tabcorp Holdings Limited has now announced overall revenue growth to 19 November as just 2.4%. Advertising and promotions costs have been cut in response.

An ongoing dispute over the broadcasting of thoroughbred horseracing is one factor to adversely affect Tabcorp wagering operations. A subsidiary, Sky Channel, lost its monopoly after the Victoria and Sydney racing clubs withdrew Sky’s broadcasting licence and established their own network. Proposals are being considered to resolve the dispute as quickly as possible. Smoking bans also contributed to the weaker performance of the company, as had the rise in fuel prices. Tabcorp is already introducing better facilities at its casinos for its smoking customers.

With growth in the Australian gambling market slowing, Tabcorp is looking beyond that continent. The company is still in the running in a bid to build a casino resort in Singapore and, in the third quarter of this financial year, expects to commence placing 60,000 Keno terminals in China. It will also place its Racetrax automated games in Maryland, USA next year. Acquisition opportunities at home and abroad remain a ‘watching brief’ for the company. Tabcorp shares fell 4.8% today after the company reported its revenue slowdown and cut previous forecasts. (E-11.28.05)

© Copyright 2005 CasinoCompendium



>>> return to archives
>>> return to frontpage