Tabcorp driven by digital growth in Q1

Tabcorp has cited the impact of growth within it digital business the main reason behind a year-on-year rise in revenue during the three months to September 30.

Group revenue amounted to Aus$578.8m (€381.6m/US$443.5m) in the opening quarter of the company’s 2018 financial year, up 5.7% on the same period last year.

Wagering and media revenue climbed by 4.5% year-on-year to Aus$481.5m and revenue from gaming services jumped 47.8% to Aus$41.4m, but keno revenue fell 5.3% to Aus$54.8m.

TAB Racing generated Aus$430m in total revenue, which is 6.4% more than last year, with the ‘Totaliser’ product the main source of income, despite generating 3% less revenue than in the same period last year.

Tabcorp also noted that although retail still represents its main business, after it was able to turnover Aus$1.55bn in the first quarter, this was 1.1% more than in the first quarter of last year.

However, this was in stark contrast to the company’s digital performance, with this area of the business turning over Aus$1.13bn, 17% more than Q1 of 2017.

Tabcorp noted while it is no longer in its practice to provide quarterly trading updates, the company believes it is “appropriate to do so given the proposed combination with Tatts Group”.

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