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Australia's Tabcorp Holdings Ltd. posted a 3.6 per cent fall in first-half profit today, partly due to the impact of smoking bans at its casinos, and ruled out major acquisitions until its performance improved.
"Merger and acquisition activity and international moves are off the agenda until we get these businesses delivering better results," Chief Executive Matthew Slatter said in a statement.
Tabcorp, Australia's largest gaming group, said net profit excluding one-off items for the six months to December 31 was A$270.3 million ($390 million).
Three analysts on average were expecting a net profit of A$284 million for the Melbourne-based company, which owns four of Australia's 13 casinos.
Tabcorp shares closed on Tuesday at A$17.75 and have risen 17 per cent since end-June, in line with an 18 per cent rise in the benchmark S&P/ASX 200 index.
Tabcorp had been looking for new growth opportunities after its former takeover target, UNiTAB, merged with Australia's top lottery operator Tattersall's Ltd. .
It had been in talks with Richard Branson's Virgin Group about a casino and resort development project in Macau but sources said this week it was unlikely a deal would go ahead.
Slatter said the outlook for the rest of the year was challenging, particularly for its casinos division due to smoking bans in pubs and clubs.
- REUTERS
