Tabcorp Holdings Limited today announced a normalised net profit after tax and before demerger related costs of A$272 million, up 3%, for the half year to 31 December 2010. Revenues rose by 3.3% but the company reports that the January floods in Queensland and Victoria have impacted revenue by approximately A$10 million. All three business divisions achieved positive revenue growth, with the strongest growth recorded in Casinos.

Chairman John Story said: “Tabcorp produced a sound result in half year to 31 December 2010. It was pleasing that all three operating divisions recorded positive revenue and earnings growth. During the half, the company announced further investments in its Queensland casinos and in Wagering. Each of the divisions now has attractive growth programs in place.”

The Chairman added, “In October 2010, Tabcorp announced that it would pursue a demerger of its Casinos business from its Wagering, Gaming and Keno businesses. The work to implement the proposed demerger is underway and the target date remains 30 June 2011.”

Chief Executive Officer, Elmer Funke Kupper, said the investments Tabcorp was making to improve customer service and expand the business were strengthening the company’s operational performance. “In the first half, we saw the benefits of our investment in the Casinos business. The redevelopment of Star City casino is on track and management was again able to minimize the disruption from construction activity. It was encouraging to see growth return to our Queensland casinos. At the same time, Wagering and Gaming continued to deliver revenue growth in highly competitive markets and maintained good expense discipline.”

Tabcorp forecasts that each of the three operating will see an improvement in revenue and earnings performance in the second half of the financial year. Despite the uncertainty in the immediate outlook for consumer spending in Queensland, the company remains confident it is on the right track with its investment programs. (E-02.03.11)

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