Christmas has come early for the bank’s shareholders with the decision to slightly increase the 2024 dividend – despite a single-digit decline in the net profit and cash earnings.
Beating the market benchmark is never easy, with 72 per cent of Australian actively managed global equity general funds trailing the S&P World Index in the six months to June 30, 2024. Domestic equity funds performed slightly better, albeit against a significantly lower bar set by the S&P/ASX 200 Index.
BetMakers gambles on a Tabcorp bid
- BetMakers Technology Group (ASX: BET) makes a $4 billion proposal to buy Tabcorp’s wagering unit.
- It bids higher than competing offers by Entain and Apollo.
- BetMakers shares fall, TAH shares rise.
BetMakers has lobbed a $4bn takeover offer to buy all the shares in pokies and wagering business Tabcorp Holdings (ASX: TAH). Under the BetMakers offer, TAH will receive $1 billion in cash and $3 billion in BET shares.
This is the third such offer that TAH has received in the last month for its wagering business. Private equity giant Apollo offered $3.5 billion to buy out Tabcorp’s wagering business, or $4 billion if it includes the gaming division; while UK-listed betting firm Entain, which owns Ladbrokes, has put up a $3.5 billion offer, lifted from its initial pitch of $3 billion.
It’s been a war of two worlds ever since the pandemic touched down last year. Online competition
Tabcorp’s wagering business has been under pressure from encroaching online competitors. While the pandemic caused mayhem to physical casinos such as Crown Resorts (ASX: CWN) and Tabcorp’s (ASX: TAH) huge network of retail outlets, online casinos moved in to fill the gap. with sales numbers skyrocketing as people continued their gambling activities from within the confines of their homes. Bricks-and-mortar casinos and gambling venues were left in the dark.
TAH’s online betting agencies have been hit with the likes of Sportsbet, Ladbrokes, and William Hill having gained market share from its retail outlets Lotto, TattsLotto, Powerball, and Lucky Lotteries.
If the business is sold separately, it would leave the remaining TAH business a pure-play lotteries company, which reported a 51% fall in revenue from the pcp as jackpots fell during the pandemic.
‘Compelling value’
The combination of both businesses represents compelling value for shareholders of both companies according to analysts.
BetMakers is a relatively new tech company rather than a gambling one, built on cutting-edge wagering technology combined with being the data partner for some of the worlds most recognised and respected bookmakers and rights holders.
BetMakers doesn’t accept bets or provide betting odds, but rather provides the analytical data on its technology to the wagering operators and gaming bodies. BetMakers is more like the ‘backbone’ of the sports betting ecosystem; a platform that connects gaming authorities with wagering operators on a global scale.
BET offers the most complete wholesale racing wagering solution in the world. BET shares are up 282 per cent this year already. The combined entity, with Tabcorp merged into the business, would have an enviable market leading position that could take full advantage of “BetMakers’ technology and product innovation to compete more aggressively in an increasingly digital-driven consumer market,” BET says.
BetMakers has Matt Tripp in its corner, who is a legend in the wagering business. Dubbed the “digital pioneer,” he founded Sportsbet, which he sold for $388 million and created BetEasy.
BetMakers also has Tom Waterhouse, who is another well-known figure in the betting industry. Ultimately, it will be Tabcorp shareholders that will eventually make the call.
Credit Suisse says its valuation of the combined unit is roughly the same as BetMakers’ offer. The broker, however, says TAH is more likely to demerge the division than accept the approach.
