Online betting rise mitigates Tabcorp’s retail decline; CMO Michael Smith leaves

Australian betting operator Tabcorp says its online operations were the belle of an otherwise unexceptional fiscal Q1 ball.

In a fiscal Q1 trading update covering the three months ending Sept. 30, Tabcorp’s wagering revenue rose 3.2% to A$3.1b despite its mainstay retail wagering numbers falling 0.4% to $1.64b. That decline was mitigated by the digital division, which reported turnover up 13.1% to $900m.

Tabcorp’s group revenue rose 1.1% to $543.5m in the quarter, with wagering revenue up 0.7% to $461.3m. Racing revenue was up 4.7%, although tote revenue fell 1.9% to $296m, partially offset by good gains in fixed odds revenue, which rose more than one-quarter to $119.3m.

The same period last year featured the second half of the FIFA World Cup and also boasted a better than average hold percentage, which combined to push this quarter’s sports betting revenue down 21% to $53m. The Northern Territory-licensed Luxbet online betting brand didn’t fare as well as Tabcorp’s main digital offering, with turnover falling 1.7% to $172m and revenue slipping 26.6% to $10.5m. Revenue from the Trackside virtual racing product improved 7.8% to $26.4m.