Tabcorp Holdings Limited yesterday provided a trading update for the third quarter of the 2011 financial year. Normalised net revenues for the three months ended 31 March 2011 were A$1,061 million, up 5.4% on the previous year. Revenue growth for the first nine months of the financial year was 3.9%. All three business divisions achieved positive revenue growth in the quarter.

Tabcorp's Casinos division continued to experience revenue growth in the third quarter of the 2011 financial year, with normalised revenues up 5.9%. Star City Casino grew normalised revenues by 11.3%, driven by continued growth in gaming and the international VIP business, and good management of disruption from construction. In Queensland, the January 2011 floods impacted significantly on the performance of the Treasury Casino & Hotel during the quarter. The other Queensland casinos continued to record positive revenue growth.

The Wagering division recorded revenue growth in the third quarter of 2.6%. Revenues were adversely affected by the wet weather in January and early February 2011 which resulted in a high number of abandoned race meetings coupled with reduced field sizes due to the state of the tracks. Revenues recovered in March 2011 as the impact from the wet weather subsided and a normal racing program could be delivered.

The Gaming division recorded revenue growth in the third quarter of 8.6%. Victorian gaming revenues grew 7.4% compared to a weaker third quarter in the previous financial year, and the business continued to grow market share. Keno recorded strong revenue growth, and the business is benefiting from the expansion of distribution and the roll out of self service technology.

The Victorian Government has been undertaking a licensing process for the grant of a single Victorian Keno Licence. On 25 March 2011 the Government issued the Victorian Keno Licence to Tabcorp. The Victorian Keno Licence is for a period of 10 years, and will operate from April 2012. The licence will authorise Tabcorp to conduct and distribute approved keno games (which may include simulated racing games) in certain hotels, clubs and wagering outlets in Victoria.

Tabcorp’s Chief Executive Officer, Elmer Funke Kupper, said that trading in the third quarter was pleasing in light of the Queensland floods. “The divisions dealt with the impact of the floods and wet weather well. Revenue growth in the third quarter improved over the first half of the financial year, which indicates that the businesses are resilient and have good underlying momentum.” (E-04.14.11)

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