Tabcorp’s gaming services business, TGS, is now “well placed for further expansion.”
The Australian gaming group launched TGS in 2012 following the Victorian government’s decision to implement a venue-operator structure within the machine gaming market. Pubs and clubs partner with the company to provide gaming machine services, including the supply of machines, upgrades, machine maintenance, marketing and reporting.
To date, TGS has contracted around 170 pubs and clubs across Victoria, representing nearly 8,500 electronic gaming machines.
In its latest round of financial results, which reflected a full-year contribution from TGS, compared with the previous year when the new division was operational for 10.5 months, Tabcorp noted an improvement in performance.
In the 2014 fiscal year, TGS’ revenues were AU$98.1m, up 13.7 per cent. Operating expenses increased 11.1 per cent to $31.1m, resulting in EBITDA of $67m – a 14.9 per cent increase.
During the period, TGS successfully entered into the New South Wales market, signing up two venues – Kogarah RSL and Auburn Tennis Club. It also launched a new loyalty scheme across Victorian venues.
“Our gaming services business, TGS, has built on the solid foundation laid in its first year in Victoria by successfully entering NSW. TGS is now well placed for further expansion,” said CEO David Attenborough.
