Tabcorp Holdings today held its 14th Annual General Meeting and in his first as Chairman John Story reported a net loss of A$164.6 million (US$108.4 million), for the year to June 30. The Victoria Government has said that Tabcorp is not entitled to a licence refund following its decision to terminate the gaming machine duopoly held by Tabcorp and Tattersall’s. However, according to the Chairman, Tabcorp intends to pursue its rights.

On 7 August this year, when Tabcorp posted its first loss since listing fourteen years ago, John Story said, “The operational performance of the Group was in line with that of the previous year. In light of the challenges that it has faced, including smoking bans, higher gaming taxes and the outbreak of equine influenza, this was a creditable outcome. The decisions taken by the Victorian Government in April 2008 have a material impact on the Group. As a consequence, the Board has determined to take a provision for the value of the licence refund. We believe this to be prudent, but it should in no way be seen as a change in our strong resolve to pursue our legal entitlement to the refund.”

In contributions to industry and community, Tabcorp has generated A$300.3 million for Victoria’s racing industry and A$214 million for that of New South Wales. It has also paid A$1.3 billion in gambling tax, A$89 million to state community benefit funds and an additional A$2 million in community support contributions. In expansion initiatives the Chairman commented on the significant expansion and redevelopment of Star City, due to be completed in 2011 at a cost of A$475 million, the newly launched Northern Territory bookmaking business Luxbet.com and continued investment in existing tote business, and the Keno expansion New South Wales hotels with over 2,700 venues by the end of 2009.

Elmer Funke Kupper, Managing Director and Chief Executive Officer, Reported a strong wagering performance despite Equine Influenza and increased competition from Northern Territory bookmakers. Gaming revenues were up 4.8% despite the indoor smoking bans, which had affected profits at Star City in tougher second half trading conditions. The CEO said Tabcorp would continue to improve operational performance in 2009 and increase focus on service, competitive position and market share. The company will step up capital investment in its existing businesses and believes it is well positioned to weather the economic slowdown. (E-10.23.08)

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