Tabcorp Holdings have announced a change in strategy following a disappointing financial result for 2010 which saw overall profit for the group drop by $52m to $469.5m.
Tabcorp CEO Elmer Funke Kupper has announced a change in strategic direction that will see the group become more of a casino focussed company. In a move away from it’s more traditional gaming and sports betting business Tabcorp is making a clear attempt to take advantage of favourable regulatory conditions in the Australian market.
An a meeting with industry analysts, Funke Kupper explained the fall in profits and the change in direction was driven by weak gaming market conditions in Victoria and Queensland.
“So the outcome is that we’ll become more of a casino business as a result of the investments that we’re making.”
Tabcorp’s focus will now be on enhancing their casino business that has seen their market share drop from 30% to 15% in the last 5 years. The driving force behind this new policy will be the $860m upgrade to Sydney’s Star City casino, which will see the establishment of a 3000 seat multi-purpose entertainment venue as well as the extension and redevelopment of VIP customer facilities.
Mr Kupper believes the focus in VIP investment was warranted despite the competition Star City casino faces in this highly competitive yet lucrative sector.
“In Australia that market now turns over $50 billion per annum” Mr Kupper said.
The move looks set to please investors, some of whom have expressed publicly concern at the lack of investment in the infrastructure of Star City casino, particularly given the large amounts being spend on Perth’s Burswood casino and Melbourne’s Crown casino, both of which are targeting VIP visitors from the lucrative Asian market.
Source: Online Pokies Club
Tags: Australian gambling, Financial Results, gaming industry finance reports, Tabcorp
This entry was written by Felix on Tuesday, August 10th, 2010 at 5:10 am and is filed under News.
