Fast rise in mobile betting boosts Tabcorp

Thursday 7 August 2014, 2:52pm

There appears to be no end in sight in the growth of betting via mobile phones and tablets.

Gambling giant Tabcorp says fixed odds betting and digital betting, especially on mobile platforms, were the major drivers of a strong performance of its core wagering business in the 2013/14 financial year.

Digital betting turnover grew 18 per cent to $2.9 billion.

Mobile devices accounted for 54 per cent of that - up from 35 per cent a year earlier.

"Our success in digital is no accident," chief executive David Attenborough said.

"Mobile continues to be the key driver of digital growth."

The rapid growth and dominance of mobile betting was evident during the recent soccer World Cup, where it accounted for around 70 per cent of Tabcorp's digital turnover.

Tabcorp generated $25 million in revenue from the World Cup.

Mr Attenborough said Tabcorp had recruited experts from a range of industries to work on mobile design and to get products to market faster.

While digital betting grows, activity in pubs, clubs and TAB stores continues to fall.

Mr Attenborough said Tabcorp was aiming to integrate digital betting with outlets like TABs, pubs and clubs, by offering "non-betting" benefits to customers doing their digital betting in pubs or clubs.

More detail would be provided when a pilot program is launched later this year, he said.

Tabcorp's net profit rose 2.6 per cent to $129.9 million in the year to June 30 from 2012/13.

The Keno business was the only division not to lift its underlying earnings, and Tabcorp has made growing that division a priority for the current financial year.

Tabcorp operates Keno in Victoria, NSW and Queensland.

It intends to start jackpot pooling between NSW and Victoria in the first half of the 2015 financial year, with Queensland to follow.

Mr Attenborugh said pooling was unlikely to increase the size of multi-million jackpots but would increase their frequency.

Shares in Tabcorp were 10 cents higher at $3.55 at 1301 AEST.

TABCORP PROFITS GIVEN DIGITAL BOOST

* Net profit of $129.9m, up 2.6pct from $126.6m in 2012/13 * Revenue of $2b, up two pct from $1.9b

* Final dividend steady at eight cents a share

– AAP

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