Wagering group Tabcorp (TAH) could have done with some of the earnings oomph from its one time stablemate Echo Entertainment (EGP) in the year to June.
Echo on Wednesday reported a solid 53% jump in “normalised” earnings as high rollers (overwhelmingly Chinese) and punters returned to the Star Casino in Sydney.
Yesterday, Tabcorp revealed a more sedate 14% rise in annual net profit from continuing operations before significant items to $171.3 million in the year to June, from $149.4 million in 2013-14.
After one-off items, net profit for the year ended June rose 30% to $334.5 million from $129.9 million the previous year. Revenue rose 6% to $2.156 billion from $2.04 billion, according to the company.
Tabcorp said in commentary that its wagering and media businesses continue to perform strongly reflecting its strong position in fixed odds and digital wagering.
“Wagering and Media achieved strong revenue and EBITDA growth in FY15, with customers responding to our integrated retail and digital offer,” CEO David Attenborough said in a statement. "This business continues to lead the market on the back of our product and channel innovations."
Tabcorp said it would pay a final dividend of 10 cents a share on September 24, up from 8 cents a share last year.
That takes the full year ordinary dividend of 20 cents a share represents, or 93% of NPAT from continuing operations before significant items and is a 25% increase on 2012-14.
"The FY16 target dividend payout ratio will increase to 90% of NPAT before amortisation of the Victorian Wagering and Betting Licence,’ they added.
The company paid a 30 cents a share special dividend back in March, so the full payout for the year is 50 cents a share.
TAH 1Y – Digital drives Tabcorp
Directors said the 2015 result was due to “strong performance by Wagering and Media business, reflecting market leadership in Fixed Odds and Digital Wagering. As well the ACTTAB acquisition was completed, strengthening Wagering and Media portfolio, with integration on track.
“Keno and Gaming Services well positioned for FY16, following new sign-ups in TGS and Keno brand relaunch, (and) agreements (are) in place for Victorian and NSW thoroughbred media rights,” directors said.
Tabcorp shares eased 1.2% to $4.64.
