Australian betting giant Tabcorp reported a 63% decline in net profits to A$127 million for the 2012/13 financial year, attributing the drop to the expiration last August of the machine gaming duopoly it shared with rival Tatts Group in the state of Victoria.
Earnings fell 4.3% year on year to $312.8 million on a 30% decline in total revenues to $2.13 billion.
On the plus side, the company said handle from digital wagering was up 13.6% for the 12 months ended 30th June, driven mostly by growth in fixed-odds and mobile betting. Mobile accounted for 43% of digital division turnover in the second half of the year, up from 28% in the first half. The company said its TAB iPhone, iPad and Android apps have been downloaded more than 900,000 times since their launch.
Chief Executive David Attenborough said strengthening the digital offering would be a “key focus” in fiscal 2014.
Tabcorp succeeded last year in securing its New South Wales monopoly through 2033, but it is suing the Victoria government for compensation for concession fees it paid back in the 1990s to secure the slot duopoly. Tatts is suing the state as well. Both also have been hit by new regulations in Victoria that call for a 50-50 revenue split rather than the 75-25 they enjoyed under the old rules.
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