Tabcorp Holdings Limited
(ASX:TAH) is bolstering its earnings profile with a 10-year monopoly licence to operate Keno games in Victoria.
The gambling and hospitality company has been officially granted the licence to operate in at least 1000 venues in Victoria which will provide earnings of $20 million before interest, tax, depreciation and amortisation.
The grant comes just a couple of weeks before the company will propose a demerger to shareholders, where Tabcorp’s Keno division will be retained in the existing structure, while the company’s casino, including Star City, will be run under a separate entity to be called Echo entertainment.
In the first six months of the 2011 financial year Tabcorp Holdings posted a net profit of $265.5 million.
