Tabcorp Holdings Ltd
(ASX:TAH) has posted a 10% drop in net profit after tax to $469.5 million for the year to 30 June 2010.
The gambling operator attributed weaker Victorian and Queensland gaming markets for the drop in profit, where revenues were down.
Tabcorp says trading conditions are likely to remain challenging and it is too early for confidence that growth will return in the year to come.
However, Tabcorp says it was encouraged by the positive performance of Star City Casino and its wagering division, where significant investments in these businesses are showing promising results.
The company has today announced an additional $285 million investment at Star City, taking total capital investments to $860 million.
Tabcorp says it is expecting a projected 14.5% return on its investment.
Tabcorb reported a $521.7 million profit for the year to 30 June 2009.
