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Concise Annual Report : Concise Annual Report 2012
CONCISE ANNUAL REPORT 2012 29 9. Review of operations The Tabcorp Group's structure post the Demerger, comprises the following four businesses: ■ Wagering; ■ Media and International; ■ Gaming; and ■ Keno. The activities and results for these continuing businesses during the financial year are discussed below. 9.1 Wagering business The Tabcorp Group conducts wagering activities in Victoria and New South Wales (NSW) through a network of agencies, hotels and clubs, and provides on-course totalizators at thoroughbred, harness and greyhound metropolitan and country race meetings. Also, totalizator and fixed odds betting is offered on sporting events. The business operates LUXBET.COM, offering a racing, sport and novelty product bookmaking service by telephone and online based in the Northern Territory. In addition, the Tabcorp Group is party to the Premier Gateway International (PGI) joint venture in the Isle of Man. The Wagering business achieved EBIT (and before impairment) of $242.2 million, which was 10.0% above the previous financial year. The business's revenue increased by 4.4% to $1,637.4 million. 9.2 Media and International business The Tabcorp Group has specialist television and radio operations focused on the racing industry and other sporting activities. The business operates Sky Racing, Sky Sports Radio and other domestic and international broadcasting services. The Media and International business achieved EBIT of $57.1 million, which was 8.1% above the previous financial year. The business's revenue increased by 6.1% to $190.2 million. 9.3 Gaming business In Victoria, the Tabcorp Group owns and operates electronic gaming machines (EGMs) in licensed hotels and clubs under the Tabaret brand pursuant to the Victorian Gaming Licence. Refer to section 10.3 regarding changes to this business which are scheduled to occur in mid August 2012. The Gaming business achieved EBIT of $244.1 million, which was 1.1% above the previous financial year. The business's revenue increased by 0.1% to $1,078.9 million. 9.4 Keno business The Tabcorp Group operates Keno in Victoria, New South Wales and Queensland. On 15 April 2012 a new 10 year Victorian Keno Licence commenced under which a member of the Tabcorp Group conducts and distributes approved Keno games in hotels, clubs and wagering outlets in Victoria. Refer to section 10.2 for further information. Prior to the commencement of the new Victorian Keno Licence, the Tabcorp Group's Club Keno business operated in Victoria through a joint venture arrangement. The Keno business achieved EBIT of $48.3 million, which was 1.0% below the previous financial year. The business's revenue increased by 8.0% to $183.1 million. 10. Significant changes in the state of affairs The following events, which may be considered to be significant changes in the state of affairs of the Tabcorp Group, have occurred since the commencement of the financial year on 1 July 2011. 10.1 Victorian Wagering and Betting Licence The new Victorian Wagering and Betting Licence ("the New Licence") was issued to Tabcorp Wagering (Vic) Pty Ltd, a wholly owned subsidiary of Tabcorp, on 19 December 2011. The New Licence period is 12 years and will commence after the expiry of the current Victorian Wagering Licence on 15 August 2012. At the discretion of the responsible minister, the New Licence may be extended for a further period of up to two years. The New Licence will allow Tabcorp to offer on-course and off-course wagering and betting on thoroughbred, harness and greyhound racing and approved sporting and other events in Victoria. It also allows for the offering of approved simulated racing games and the operation of a betting exchange. The documents governing the formal relationship between Tabcorp Wagering (Vic) Pty Ltd and the Victorian Racing Industry were executed on 21 December 2011. Tabcorp paid the $410 million fee for the New Licence to the Victorian Government in January 2012.
Concise Annual Report 2013