Tabcorp shares soar on Victorian licence deal
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More news: Tabcorp stock rocketed on Monday following news that the gambling giant had secured a 20-year exclusive wagering licence in Victoria. Share were trading more than 22% higher at 90 cents at around 12.45pm AEDT.
Tabcorp secures 20-year wagering licence in Victoria
The news: Tabcorp has secured an exclusive 20-year wagering licence from the Victorian government, valued at $864 million.
The numbers: The gambling giant said it will pay $600 million upfront in June 2024 for the licence, and $30 million per year until 2043. Had the new terms been applied for FY23, indicative annual earnings before interest, taxes, depreciation and amortisation would have been $140 million higher, said Tabcorp.
The context: Tabcorp's existing licence, which it has held since 1994, is due to expire next August. The new agreement staves off competition from Sportsbet, which had previously bid to split the licence between multiple bookmakers.
The source: ASX announcement
