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Private equity likely to circle Tabcorp business unit

James Thomson
James ThomsonColumnist

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Key Points

  • Half-year Revenue ($m) 2913.9 , up 4.4%
  • Pre-tax profit ($m) 281.8 , up 1.4%
  • Net profit ($m) 198.8 , up 10.8%
  • Final dividend (c) 11.0 , flat 0.0%
  • Date dividend payable March 18

Private equity bidders are expected to circle Tabcorp’s gaming services business, after a 43 per cent drop in earnings forced chief executive David Attenborough to launch a strategic review of the division.

The business unit, which is the largest provided of gaming machine monitoring services in the country, had earnings before interest and tax of $122 million in the 2019 financial year. While the loss of key contracts saw EBIT fall 43.4 per cent to 21.3 million in the six months to December, analysts estimate the unit could be worth more than $500 million.

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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com

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    Original URL: https://www.afr.com/companies/games-and-wagering/private-equity-likely-to-circle-tabcorp-business-unit-20200219-p542bp