Tabcorp
Gambling and gaming business, Tabcorp (ASX:TAH), Chief executive David Attenborough has announced their full year accounts on Thursday during the stock market reporting season.
- Net profit was down from $540.8 million (2010-2011)to $340 million. But prior year included casino business which was demerged.
Gaming company Tabcorp Holdings (ASX:TAH) has reported increased first quarter revenue in all divisions despite gloomy market conditions.
Revenue for the three months to September rose 2.7 percent to $759.4 million, boosting shares to $2.71 ( a 4.2 percent gain).
Chief executive David Attenborough said Tabcorp’s wagering, gaming, keno and media and international divisions all posted revenue growth even during the demerger of Echo, the company's casino business.
Victorian racing will get a minimum $1 billion over three years as part of the joint deal with Tabcorp (ASX:TAH), which has proposed a performance obligation payment until 2015.
After Tabcorp defeated rival Tatts Group yesterday for Victoria's 12-year wagering and betting licence, shares rose more than 5 percent to $3.26, a 16 cents increase. Tatts shares added 1 cents to close at $2.33.
Australian gaming company, TabCorp (ASX:TAH) is planning to split its stocks into two: separating its company into two parts – its casino business and its wagering, gaming and Keno enterprise. From July next year, the two separate entities will be listed on the Australian Securities Exchange. The company hopes to raise $430 million to redevelop its casinos and lure punters away from Crown.
Study the historical dividends for TABCORP HOLDINGS LIMITED. Dividends are a portion of company profits paid out to shareholders. You are eligible to receive TAH dividends if you own the company's stock on the ex-dividend date. Investor's must have purchased the stock before the ex dividend date to be entitled to the dividend. The previous owner of the shares will receive the TAH dividend if you buy the stocks on or after the ex dividend date. The Pay Date or the Date Payable is the day when the dividend is paid to shareholders.
Tabcorp’s (TAH) chances of taking a yearly $65 million worth of hit to its operating earnings from race field charges appears to be smaller than what it was assumed by the market. In the earlier week the company presented the data regarding its recently implemented race field fees which has cost the company about $20 million of earnings before interest and taxes in the year 2008.
Tabcorp Holdings (TAH) has announced a drop in profit to $263.2 million for the six months to 31st December 2008 by 3.7%. The company has also revealed that it is planning to undertake a $450 million equity capital raise. The result was in line with the previous year with normalised earnings of 49.4 cents per share. Tabcorp declared an interim dividend of 35 cents per share, reflecting a revised dividend policy which is to distribute between 70% and 80% of normalised earnings each year.
Tabcorp (TAH) have a Neutral 2 share trading recommendation and an unchanged price target of $16.80 from analyst UBS. UBS forecast H1 07 NPAT $279.7m, down 1.3% on the $283.2m reported in the pcp. They forecast a 45c/share dividend [44c/share in the pcp]. Given management gave guidance for a 1H result "pretty much in-line with the pcp" at the AGM close to the end of the half, we do not expect the result will vary from this guidance to any large degree. With cap management a key theme this reporting season, the analyst believe that there are various options available in this result. With $114m of excess franking credits, they believe TAH could announce a $350m off-market buyback, which we calculate will be 1.5-2.5% EPS accretive. Alternatively there is the potential for a special ff div of 50.5cps, which would take FY07 div yield to ~8%. Whilst they believe any cap management initiatives will be taken well by the market, TAH continues to face numerous headwinds. We are particularly mindful of the upcoming newsflow around the Star City exclusivity (expires Sept 07). The analyst's valuation and price target are DCF-based, using a WACC of 9.0% and assumes renewal of the VIC gaming and wagering licence which adds 50cps. Whilst one cannot ignore the high quality assets owned and operated by TAH (not only strong market position, but also the strong cash generation), trading on an adjusted FY08E EV/EBITDA of 11.2x, they believe the stock is fully-priced at current levels.
Tabcorp (TAH) has a Neutral 2 shares recommendation and a share price target of $16.80 from shares analyst UBS. The analyst has theorised some ways that Tabcorp can rationalize their balance sheet: "Options include: 1) Sale and lease-back of casino property - which UBS calculate would be roughly EPS neutral given current property cap rate levels. UBS estimate TAH could raise anywhere between $1b to $3.5b. 2) Leverage balance sheet - retaining investment grade debt would allow an additional $1.1b in debt, however Sky City-type leverage levels would allow as much as $2.5b in additional debt." UBS notes that, at the recent AGM Tabcorp management stated they would explore inorganic growth options that leverage TAH's scale and capabilities. UBS believe SKC fulfills such criteria, and analyse a potential Sky City acquisition. We calculate EPS accretion of circa 8.4% if fully debt funded, assuming a ~19% premium and $25m synergies by yr 2. UBS calculate TAH has the ability to pay a fully-franked div of $265.3m (or circa 50cps) utilising excess franking credits. Alternatively this could be structured as an off-market buyback that is part fully-franked dividend and part capital return. Given average franking of 75% and discounts of 15% for this type of buy-back, UBS calculate EPS accretion of 1.5%-2.5%.
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