Tabcorp profits hit by cost of Sun Bets

Business News

Turnover in its retail outlets fell 2.5 per cent to $3.3 billion in the six months to December, while digital betting turnover rose 13.8 per cent to $2.2 billion, helping total turnover rose by 2.3 per cent.

The company has introduced a new digital commission model, where clubs, hotels and TAB agents get a payment when a punter bets digitally, on a smartphone or tablet, in their venue.

Customers can now also scan a winning ticket using the TAB app and have their winnings immediately deposited into their account.

In another move to attract digital punters into outlets, Tabcorp will enhance its animated, fictional racing game Trackside, including improved graphics.

Tabcorp says the game has become stale and needs to be refreshed.

Chief executive David Attenborough says the venue digital commission model will include Tabcorp’s retail venue partners in the significant growth of digital gambling.

“It’s been well received by venue partners who are now participating in the growth of our digital business,” he said.

“In-venue digital turnover is already equivalent to two per cent of total retail turnover.”

Tabcorp’s net profit in the first half of the financial year dropped 28 per cent from a year ago to $58.9 million, due to almost $44 million in one-off costs.

They included $18 million in start-up costs for UK online wagering business Sun Bets, plus $9 million in costs related to Tabcorp’s proposed merger with Tatts Group.