Wagering and gaming firm Tabcorp says its continuing businesses are well positioned, and the company is confident heading into the current financial year.
Tabcorp, which demerged its casino operations into a separately-listed entity in June, increased full year net profit by 14 per cent to $534.8 million from $469.5 million a year earlier.
The result included the casinos operations, which benefited from attracting more high-rolling gamblers.
Normalised net profit, which excludes demerger-related items and takes into account variations in the theoretical win rate against high-rolling gamblers, rose 1.9 per cent to $486.3 million.
Tabcorp’s continuing businesses generated a 5.2 per cent increase in earnings to $562.5 million, with each division reporting growth in revenues and earnings despite tough competition and a weak retail environment.
Tabcorp said its long-term future was secured by the recent award of the Victorian wagering and betting licence; a new 10-year Victorian keno licence; expanded rollout of the animated racing game, Trackside; and growth in fixed odds betting.
“We have investment plans and strategies in place to underpin the company’s future growth,” Tabcorp chief executive David Attenborough told reporters on Tuesday.
“We have a powerful portfolio of market-leading customer brands such as TAB Sportsbet, TAB, Keno and Sky Racing, which are well placed to secure and grow their businesses.”
He said trading activity had been steady so far this financial year.
Tabcorp said it would continue to invest in new technology and self-service terminals, strengthen its retail footprint and expand live betting and Trackside.
Tabcorp’s wagering division lifted earnings by 4.5 per cent to $220.2 million on a one per cent lift in revenues to $1.57 billion in a “challenging” market.
A significant lift in fixed-odds sports betting and online wagering offset a fall in totalisator revenues, which Mr Attenborough said was expected to continue to decline in line with worldwide industry trends.
Trackside had been installed in more than 1,100 NSW venues since January 2011, with sales of $3.3 million per week in NSW.
The number of self-service terminals in NSW and Victorian TAB outlets had increased to more than 3,400.
Tabcorp said that during 2011 it had expanded wagering coverage to more than 83,000 races and introduced wagering applications to iPads and smartphones.
The media and international division generated a 2.7 per cent lift in earnings to $52.8 million on a 9.3 per cent lift in revenues to $179.3 million as Tabcorp’s racing broadcaster, Sky Racing, signed new contracts.
Mr Attenborough said the media and international division was a growth business and core to the company’s future.
Gaming division earnings rose 7.1 per cent to $241.4 million, with revenue up 3.9 per cent to $1.08 billion.
Tabcorp’s duopoly with Tatts Group over poker machines outside Melbourne’s Crown casino ends in August 2012.
Tabcorp expects that Tabcorp Gaming Solutions, which will help clubs and pubs manage their poker machines, will contribute about $45 million in earnings from August 2012.
Earnings from Keno rose 4.7 per cent to $48.8 million, with revenues up 7.9 per cent to $169.6 million, as the business expanded in NSW and Queensland.
Tabcorp shares gained eight cents, or 2.5 per cent, to $3.27 by 1328 AEST.
