Wagering and keno giant Tabcorp is encouraging punters to bet digitally in TAB agencies, pubs and clubs, as turnover in its outlets falls and online betting surges.
Tabcorp says integrating digital operations into its retail outlets and supporting its venue partners is a key focus.
Turnover in its retail outlets fell 2.5 per cent to $3.3 billion in the six months to December, while digital betting turnover rose 13.8 per cent to $2.2 billion, helping total turnover rose by 2.3 per cent.
The company has introduced a new digital commission model, where clubs, hotels and TAB agents get a payment when a punter bets digitally, on a smartphone or tablet, in their venue.
Customers can now also scan a winning ticket using the TAB app and have their winnings immediately deposited into their account.
In another move to attract digital punters into outlets, Tabcorp will enhance its animated, fictional racing game Trackside, including improved graphics.
Tabcorp says the game has become stale and needs to be refreshed.
Chief executive David Attenborough says the venue digital commission model will include Tabcorp's retail venue partners in the significant growth of digital gambling.
"It's been well received by venue partners who are now participating in the growth of our digital business," he said.
"In-venue digital turnover is already equivalent to two per cent of total retail turnover."
Tabcorp's net profit in the first half of the financial year dropped 28 per cent from a year ago to $58.9 million, due to almost $44 million in one-off costs.
They included $18 million in start-up costs for UK online wagering business Sun Bets, plus $9 million in costs related to Tabcorp's proposed merger with Tatts Group.
The merger is expected to be completed by mid-2017 if regulatory and industry approval is granted.
Tabcorp shares dropped 25 cents, or 5.3 per cent, to $4.50.
Analysts at Deutsche Bank said the significant items were a surprise, while revenue growth in Tabcorp's wagering and media divisions was weaker than expected.
TABCORP'S PROFIT HIT BY ONE-OFF COSTS
* Half year net profit down 28pct to $58.9m
* Revenue up 2.1pct to $1.16b
* Interim dividend up half a cent to 12.5 cents, fully franked
