REPORTING SEASON: Tabcorp Holdings (TAH)

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Figure 1: Tabcorp Holdings 12 month chart


Gaming company Tabcorp Holdings Limited (TAH) has reported a modest increase in first half profit to $74.6 million, slightly above market consensus.

Strong gains in its gaming and media divisions managed to offset flat revenue from its wagering business and a fall in revenue from its Keno business.

Total revenue rose by just one per cent to $1.05 billion.

Earnings from its Keno business dropped 1.6 per cent to $36.1 million due to higher than usual number of $1 million-plus jackpots paid out to customers in its Queensland business.

Wagering revenue was impacted by changes to Victorian gaming laws and soft discretionary spending.

Wagering revenue fell 8% in Victoria in the period while there was healthy growth in TAH’s fixed odds business.

The company has seen strong growth in customer engagement through its ‘TAB Rewards’ loyalty program.

Chief Executive David Attenborough said the result was solid.

“In the context of a relatively subdued retail environment, we achieved overall earnings growth, supported by good cost control.

“Shareholders will receive a fully franked interim dividend of 8 cents per share, which is down on last year’s payment.

It will be paid on the 24th March 2014. TAH shares were relatively steady on the result but are down 7% so far this calendar year after gaining 19% in 2013.


You can see all of CommSec’s reporting season analysis by clicking here.

Juliette Saly, Market Analyst,