Despite slowing growth this quarter compared to last year, Australia's largest gaming company, Tabcorp has played down the impact of rising petrol prices and interest rates on its gaming revenue.
For the first seven weeks of this quarter, gaming revenue has increased 1.1 per cent, compared with 6.3 per cent in the corresponding 2005 period.
Tabcorp chief executive Matthew Slatter said he was more concerned with the impact of smoking bans in Queensland and NSW, and the renovation to its Conrad Jupiters casino in Queensland, which saw revenue drop 1 per cent in the year ending June 30, 2006.
Tabcorp confirmed a $547.3 million net profit, showing a 7% increase, before losses from non-recurring items, affected by a costly broadcast rights dispute with TVN and the doubling of the gaming machine levy in Victoria. The company reported a $97.4 million in total sales and $16.7 million in revenue, thus having a drop in shares of 0.3 percent, to $15.45, compared with a 1.9 per cent slide in the wider market.
After reporting a 77 percent increase in sales due to the Socceroos' performance at the World Cup, the company will expand its sports betting operations.
According to Slatter, the company was confident with the renewal of its gaming and wagering licenses. He agreed a merged Unitab and Tattersall's was likely to be a competitor after it failed in a hostile takeover bid for Unitab after the Australian Competition and Consumer Commission refused to approve its bid.
To end a dispute over broadcast rights, the ACCC is evaluating an agreement between Tabcorp and TVN in May. Tabcorp and TVN are committed to a resolution with the ACCC, Slatter said.
Tabcorp had encountered technical problems with its keno joint venture in China and was now unlikely to roll out 60,000 machines over five years, Slatter also confirmed.
Sunday, September 03 , 2006
John Sullivan
