Dividend a sure bet
Tabcorp revenue soars
TABCORP shareholders will receive an extra reward after a strong performance from the its wagering division helped lift first-half profit by 64 per cent.
Shareholders will receive a fully franked special dividend of 30 cents a share — in total $230 million — on top of an interim dividend of 10 cents a share.
Tabcorp will use proceeds of a share offer to fund the special dividend so the company can maintain its balance sheet and capital position.
It is seeking to raise about $236 million through an entitlement offer of new shares, on the basis of one for every 12 shares held, at $3.70 each. Tabcorp shares last traded at $4.71.
It yesterday announced a net profit of $122.4 million for the six months to December 31, up from $74.6 million the previous year, boosted by a tax benefit of $31.5 million.
The company’s biggest business segment, wagering and media, lifted revenue by 7.8 per cent to $960.7 million as Tabcorp provided greater alignment of its wagering and media assets.
The acquisition of ACTTAB in October, and a successful Spring Racing Carnival and Soccer World Cup also contributed to revenue growth.
Wagering on digital platforms, especially on mobile devices, continued to soar.
In the other Tabcorp business divisions, Tabcorp Gaming Solutions, its gaming services business, lifted revenue 1.6 per cent to $50.7 million.
But Keno revenue fell 0.6 per cent to $103.8 million, affected by changes to gaming regulation in Queensland and jackpot activity in Victoria.
Tabcorp said it would revamp Keno with a brand relaunch and new products. people updating their wardrobes, going out for dinner or buying cosmetics and other pharmacy goods.”
Total retail spending was $23.8 billion in December, up from $23.755 billion a month earlier.
The 0.2 per cent rise was short of expectations, but was stronger than the 0.1 per cent rise in November.
Mr James said the expectation of more interest rate cuts was good news for retailers