REPORTING SEASON: Tabcorp Holdings (TAH)

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Figure 1: Tabcorp Holdings Ltd 12 month chart


Tabcorp Holdings performed slightly better than forecast over first half

 Tabcorp Holdings (TAH) beat expectations with its $90.9m Net Profit After Tax before significant items for the six months ending December 2014.

 Earnings were driven primarily from its Wagering (betting) and its Media (Sky Racing) business units which were recently integrated. The Soccer World Cup accounted for $10.3m in revenue while TAB Racing revenues added $878m.

 Revenue from its Gaming Services (electronic gaming machines) division only rose a modest 1.6% while Keno’s eased by 0.6% over the half.

 TAH will pay eligible investors a fully franked $0.10 interim dividend together with a $0.30 special dividend. Both are payable on 16 March. The special dividend will cost ~$230m and entered a halt following the announcement of a $236m capital raising.

 Its priorities in 2H15 include driving improvements in productivity, further integrating retail and digital channels together with product expansion in its Wagering & Media business unit (accounts for ~73% of earnings) and Gaming Services. TAH aims “…to give the game [Keno] and brand new energy”. TAH has maintained guidance.


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Steven Daghlian, Market Analyst,