The market was undecided about Tabcorp’s interim profit.
The shares eased 5c to $7 then rebounded to close unchanged at $7, about what the 2% fall in net earnings for the December half was worth.
Tabcorp said its preferred "normalised" net profit after tax was $264.0 million, up 0.8%, for the half year to December 2009.
Australia’s biggest gambling company, said the fall was due to higher taxes on its poker machines and increased fees paid for its TAB wagering division.
Net profit fell to $257.9 million in the six months to December 31.
That was a touch higher than analysts’ estimates for net profits of $252 million.
And the company remains uncertain about the rest of 2009-10.
“We expect conditions to remain somewhat uncertain for the remainder of the 2010 financial year,” CEO Elmo Funke Kupper said in the statement.
“We were encouraged by the performance of Star City casino and our wagering division.”
Chairman John Story said in the statement: “Overall, this is a sound result in variable economic conditions and a difficult regulatory environment.
"The company is progressing initiatives and investments in each of the operating divisions that are showing promise and provide a good foundation for growth in the coming years.”
"Normalised net revenue was $2,190.5 million, up 2.6%. Revenue was driven by good performances in Wagering and at Star City casino, but held back by soft trading in the Queensland casinos," the company said.
"Gaming division revenue was flat. Expenses were up 2.9%.
"The group incurred new race fields charges in Wagering and higher gaming taxes in Queensland casinos totaling $13 million after tax.
"These new charges were offset by a lower effective income tax rate in the first half, primarily due to research and development tax credits and the release of provisions following resolution of the long-running Star City pre-paid rent dispute with the Australian Taxation Office."
Tabcorp declared a half-year dividend of 30c per share, from 35c a share for the first half of 2008 and a final for that year of the same amount.
Earnings before interest and tax from casinos fell 11% to A$147.8 million as it paid higher taxes on slot machines at its three Queensland venues.
Earnings from wagering, which has the TAB betting monopolies in NSW and Victoria, increased 1.4% to A$147.5 million.
Poker machine profits rose 0.7% to $145.1 million; wagering EBIT was $147.5 million, up 1.4%.
Underwhelming, really.
