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Tabcorp on revenue roll as punters embrace fixed-odds

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Tabcorp has generated more revenue in the first three months of the calendar year, partly as a result of greater interest in fixed-odds betting and the animated racing game, Trackside.

The wagering and gaming firm said on Thursday that positive revenue trends in the first half of the 2011/12 financial year have continued into the third quarter.

“Tabcorp’s revenue performance for the year to March 2012 continues to be positive and in line with the company’s first half performance,” Tabcorp chief executive David Attenborough said.

“Our wagering business is benefiting from our multi-channel distribution strategy, particularly our focus on the expansion of self-service and mobile technologies, and from continued investment in new products and services.”

Revenues from January 1 to March 31 totalled $724.0 million, up 2.7 per cent on the prior corresponding period.

Total revenues for the year to March 2012 were up 2.8 per cent to $2.3 billion.

Tabcorp said it had benefited from more profitable products such as fixed-odds betting and the animated racing game, Trackside.

Revenue from fixed-odd betting and Trackside had more than compensated for a fall in totalisator revenues.

Third quarter gaming revenue was lower amid “softening” conditions ahead of the expiry of Tabcorp’s gaming licence in August 2012.

Gaming revenue fell 0.9 per cent to $257.1 million, but quarterly revenue from the media and international business was up 10.2 per cent to $48.8 million, and keno revenue lifted 3.5 per cent to $44.5 million.

Tabcorp said that the number of gaming machines that had been contracted to its gaming services provider, Tabcorp Gaming Solutions (TGS), was now more than 8,500.

TGS will help pubs and clubs manage their poker machines after Tabcorp and Tatts Group lose their duopoly over poker machines in Victoria, excluding Melbourne’s Crown casino, in August 2012.

Tabcorp estimated that TGS would generate earnings of about $55 million in the 12 months commencing August 16, 2012.

Shares in Tabcorp were five cents stronger at $2.90 on Thursday.