Tabcorp bets on revenue pick-up

“In light of the current economic conditions, this is a pleasing performance,” added CEO Elmer Funke Kupper. According to speech text’s released before the meeting, gaming giant Tabcorp said its variable contribution went up by less than revenues after absorbing the impact of new race fields fees in wagering and higher gambling taxes in Queensland.

“We expect conditions to remain challenging in the remainder of the year, with the economy in the early stages of a recovery, intensifying competition in the wagering market and a ramp up in construction activity at Star City,” Kupper said. “Our recent performance puts us in a good position to manage through this period, and the investments we are making give us confidence about our long term future.”

In August, Tabcorp reported a net profit of us$ 521.7 million for 2009 to June 30, compared with a loss of us$ 164.6 million in the prior year. Tabcorp said it had moved into the second phase of its performance program and would focus on the growth of each of its three operating divisions.

It said its casinos division was entering an expansion phase, its wagering division was repositioning in a much more competitive wagering market, and its gaming business was optimising its performance ahead of the changes in the Victorian gaming industry in 2012.

“The decisions and investments we will make over the next two years will define the shape and long term future of the company,” Kupper said. “Our aim is to arrive in 2012 in the best possible shape, and our strong balance sheet puts us in a solid position to commit to key investments with confidence.”