New casino acquisitions have had mixed results for the Australian companies Tabcorp and PBL. Melbourne-based Tabcorp purchased Jupiters, Queensland in November 2003 but then saw the value of bets fall by 40% with increased competition from Macau for its Asian gamblers.

Since then casino earnings (EBITDA) have risen by 1.8% to A$186 million. The acquisition of Tab Ltd, Australia’s second largest wagering business, has seen Tabcorp stock increase in value by 38% since April and gives the company a quarter of the country’s A$15 billion annual gambling revenues. The company’s gaming unit increased earnings to A$135 million, a rise of 14%.

Publishing & Broadcasting Ltd. (PBL) purchased the Burswood Casino in Perth last year for A$750 million. The company also owns the Crown Casino in Melbourne. Both casinos have proved profitable for the company, achieving double-digit growth. The increase in revenues has been attributed to a strong economy increasing gaming action, and earnings have risen 39.6% to A$228.5 million.

Both companies are seeking further expansion and have decided to look to Asia. Tabcorp has announced its intention of bidding to build an integrated casino complex in Singapore; PBL are in a joint venture with Melco International, one of casino mogul Stanley Ho’s many gaming interests, to develop a casino resort in Macau as an initial step.

With global gaming markets showing strong growth at the moment, Tabcorp and PBL should continue to make their presence felt both at home and abroad. (E-02.24.05)

© Copyright 2005 CasinoCompendium



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