Tabcorp continues to morph to meet the changing market, announcing a new partnership and profit results in transformation.
The ASX-listed Australian gaming giant released its half-yearly results yesterday, which spoke mostly of profits down due to capex and restructure in light of changing markets and opportunity.
Results stating Net Profit After Tax (NPAT) were down 33.1 per cent on the prior corresponding period (PCP), amounting to $24.6 million – while also noting $15.6 million in ‘significant items’ expenses and the $31.5 million difference in the PCP of a one-off tax benefit.
Other points of significance noted were the 8.3 per cent growth of Tabcorp-contracted gaming machines (to 9,550) and the imminent launch of the new online wagering and gaming business, Sun Bets, to be launched with News UK in 4Q16.
Tabcorp managing director and CEO David Attenborough described the Sun Bets opportunity as pivotal in the goal to “position the business for further growth” – including overseas expansion.
“This is an exciting opportunity for Tabcorp to take its market-leading wagering capabilities into the A$7 billion UK online gambling market.”
Furthering this ideal, the company disclosed plans to begin a strategic partnership with cutting-edge betting technology company Longitude LLC.
Proprietors of the patented Enhanced Pari-Mutel System, Longitude will embed its software into Tabcorp’s customer-facing technology infrastructure.
Built from a history of totaliser betting systems, the advanced software will allow the aggregation of pools and introduction of new bets into existing pools, bringing new bet types and providing odds on a vast range of wager types.
In its release, Tabcorp says the partnership strategy – which is still to meet regulatory approval – is key to its goal of enhancing the pari-mutuel wagering experience for its customers.
“Wagering turnover is continuing to increase,” said Craig Nugent, Tabcorp chief operating officer, wagering & media.
“In such a diverse wagering environment, it is critical to ensure that we are offering our customers industry-leading technology in pari-mutuel wagering as well.”