SYDNEY - Profits at Australia's largest betting group Tabcorp Holdings Ltd would be hit by the outbreak of equine influenza in eastern parts of the country three months ago, the group's new chief executive said last night.
Horse flu, which has brought horse racing to a standstill in
affected areas and triggered temporary bans on the transportation of the animals, would cost Tabcorp A$30 ($36.21) million in pre-tax profits, Elmer Funke Kupper told ABC television.
The group's earnings before interest and tax in the year to June 30 were A$902 million, with casinos contributing A$386.2 million, wagering A$253.7 million and gaming A$262.1 million.
Annual net profit fell 3.8 per cent to an "unacceptable" A$515.6 million, the group said on Aug. 23.
Tabcorp, which owns some of Australia's biggest gambling operations such as Sydney's Star City casino and the Jupiter casino on the Gold Coast, has also been hit by smoking bans in the most populous states of New South Wales and Victoria.
Equine influenza would hurt Tabcorp for 6-12 months, said Funke Kupper, who was appointed chief executive in July, just before the horse flu outbreak.
Funke Kupper said Tabcorp was not presently interested in acquisitions. The company has spent A$3.9 billion on acquisitions since 2003, including some failed bids and expansion moves.
"Our focus is 100 per cent on keeping the show going," he told the Inside Business programme.
Australia's racing industry has begun to recover from the outbreak of horse flu, and the Melbourne Cup, the country's premier horse race, will be held on Nov. 6.
- REUTERS
