Tabcorp shareholders well get an extra reward after a strong performance from the gaming giant's wagering division helped lift first half profit by 64 per cent.
Tabcorp shareholders will receive a fully franked special dividend of 30 cents per share - in total $230 million - on top of an interim dividend of 10 cents per share.
Tabcorp will use the proceeds of a new share offer to fund the payment of the special dividend so the company can maintain its current balance sheet and capital position.
Tabcorp is seeking to raise about $236 million through an entitlement offer of new shares, on the basis of one for every 12 shares already held, at $3.70 each. Tabcorp shares last traded at $4.71.
"Our shareholders really value dividends," Tabcorp chief executive David Attenborough said on Thursday.
"In order to fund this we have looked at the most appropriate ways to do it, and therefore we have taken the decision to fund it through this rights offer."
Tabcorp on Thursday announced a net profit of $122.4 million for the six months to December 31, 2014, up from $74.6 million a year ago.
Profit was boosted by a tax benefit of $31.5 million.
The company's biggest business segment, wagering and media, lifted revenue by 7.8 per cent to $960.7 million as Tabcorp provided greater alignment of its wagering and media assets such as the Sky Racing channels and Sky Sports Radio.
Tabcorp said media and vision were key drivers of wagering, and the company acquired more customers and generated strong betting volumes.
The acquisition of totalisator and fixed-odds wagering provider ACTTAB in October 2014, and a successful thoroughbred Spring Racing Carnival and Soccer World Cup also contributed to revenue growth.
The Soccer World Cup contributed revenues of $10.3 million.
Wagering on digital platforms, especially on mobile devices, continued to soar.
In the other Tabcorp business divisions, Tabcorp Gaming Solutions, which is the group's gaming services business, lifted revenue by 1.6 per cent to $50.7 million.
But the Keno division's revenue fell 0.6 per cent to $103.8 million, affected by changes to gaming regulation in Queensland and jackpot activity in Victoria.
Tabcorp said it was progressing its plan in the second half of the financial year to "revamp the Keno customer experience", including a brand relaunch and new products.
Tabcorp shares remained in a trading halt at 1353 AEDT while the company undertook the institutional component of the capital raising.
STRONG WAGERING BOOSTS TABCORP PROFIT
* Half-year revenue of $1.12b, up seven pct from $1.05b.
* Half-year net profit of $122.4m, up 64 pct from $74.6m.
* Interim dividend of 10 cents per share, up from eight cents. Special dividend of 30 cents per share.
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