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Tabcorp Posts Improved Yearly Profit
Gaming and wagering company Tabcorp has reported a 2.6 per cent rise in net profit to $129.9 million, which was tempered by a $19.5 million levy related to its previous operation of poker machines in Victoria, reports smh.com.au. Excluding the effect of the health benefit levy for the management of pokies, which Tabcorp is fighting in the courts, the company's net profit from continuing operations reached $149.4 million in the financial year ended June - in line with an analysts' consensus forecast of $146.8 million, according to Bloomberg. The underlying result represents a 7.4 per cent increase from a year ago. The company reported a 4 per cent fall in revenue to 2.04 billion, which was also in line with expectations. Earnings before interest and tax from continuing operations was flat at $321.7 million, which was just above consensus of $318.7 million. Tabcorp chief executive David Attenborough said the result showed the benefit of "being diversified across four businesses". "The strong performance of our wagering business was driven by excellent growth in fixed odds and digital wagering," he said in a statement. Tabcorp's wagering division, which contributes 77 per cent of revenue and 55 per cent of EBIT, grew slowly, rising 1.1 per cent to $1.6 billion. The shift in customer preference away from Tabcorp's totalisator business to fixed odds continued. Totalisator revenue fell 6.3 per cent to $1.3 billion, while fixed odds revenue rose 37 per cent to $322.9 million.