TABCORP HOLDINGS LIMITED — Earnings Release 2016

May 1, 2016

2 May 2016

3Q16 Trading Update

Tabcorp Holdings Limited today provided a trading update for the third quarter of the 2016 financial year (3Q16). Reported 3Q16 group revenues were $518.4 million, up 1.9% on the prior corresponding period (pcp). Year-to-date revenues are $1,654.0 million, up 1.9% on the pcp.

Revenue	1H16	1H16	3Q16	3Q16	YTD	YTD
	$m	Change onpcp	$m	Change onpcp	$m	Change onpcp
Wagering &Media	973.0	1.3%	442.8	0.5%	1,415.8	1.0%
Gaming Services	52.9	4.3%	26.9	11.2%	79.8	6.5%
Keno	109.7	5.7%	48.7	10.9%	158.4	7.2%
Group Revenue	1,135.6	1.8%	518.4	1.9%	1,654.0	1.9%

Notes: Unaudited. Wagering revenue excludes the VRI’s interest in the Joint Venture.

“Tabcorp continued to drive revenue growth in the third quarter, with pleasing levels of customer engagement across the group. Wagering turnover grew more than 3%, although the revenue performance was impacted by favourable results for customers,” said Managing Director and Chief Executive Officer, David Attenborough.

“We were also encouraged with the continued positive trading momentum in Keno. Our Victorian business had a very strong quarter, with the benefits of jackpot pooling with NSW evident. Gaming Services continues to grow, with the opening of new venues in NSW in late 2015 coming through in the revenue performance this quarter.”

Total Wagering turnover was $3,067.2 million, up 3.1%. Wagering & Media revenues for 3Q16 were $442.8 million, up 0.5%. The difference in turnover and revenue growth largely reflects favourable results for customers, particularly on the major race meetings in March. During the quarter, Tabcorp demonstrated its commitment to the racing industry through a new eight-year sponsorship agreement with the Victoria Racing Club, extending the existing relationship to 2024.

Gaming Services revenues were $26.9 million, up 11.2%. During the period, TGS had 412 revenue-generating machines under contract in NSW. A further 301 machines will commence billing in 4Q16. The total number of contracted machines in Victoria and NSW stands at 9,585.

Keno revenues were $48.7 million, up 10.9%. Positive momentum continues on the back of the brand and customer experience transformation, as well as a soft pcp performance impacted by an abnormal number of Spot-10 jackpots. Performance in NSW and Victoria remains strong, while Queensland continues to be challenged by local economic conditions.

Wagering & Media KPIs

Revenues by product	1H16	1H16	3Q16	3Q16	YTD	YTD
	$m	Change onpcp	$m	Change onpcp	$m	Change onpcp
TAB Racing
Totalisator	638.5	(3.7%)	278.3	(4.3%)	916.8	(3.9%)
Fixed Odds	256.8	19.6%	117.0	10.6%	373.8	16.6%
Total TAB Racing	895.3	2.0%	395.3	(0.4%)	1,290.6	1.2%
TABSports	98.6	(8.1%)	47.7	7.2%	146.3	(3.6%)
Trackside	50.8	(2.9%)	22.1	(7.5%)	72.9	(4.3%)
Luxbet	25.0	(5.7%)	11.6	(7.2%)	36.6	(6.2%)
Media	85.8	(0.6%)	43.9	0.7%	129.7	(0.2%)

Notes: Victorian revenues includes JV partner interest. NSW represents 100% of revenue.

Total TAB racing revenues were $395.3 million. Fixed Odds racing turnover grew by more than 20% in the quarter, however revenues were up 10.6% as a result of unfavourable yields, which also impacted Luxbet revenues.

Media revenues were $43.9 million, up 0.7%. The results are inclusive of savings passed on to licensed venues and TAB agencies for Victorian thoroughbred racing vision subscriptions as a result of new media rights arrangements implemented last year.

**Turnover by distribution **	1H16	1H16	3Q16	3Q16	YTD	YTD
	$m	Change onpcp	$m	Change onpcp	$m	Change onpcp
Retail	3,388.4	(1.4%)	1552.7	(2.4%)	4,941.1	(1.7%)
Digital	1,926.0	9.2%	938.3	15.2%	2,864.3	11.1%
CallCentre	265.7	(7.2%)	134.2	(6.0%)	399.9	(6.8%)
Other	585.5	3.8%	248.1	3.9%	833.6	3.9%
Luxbet	402.2	4.4%	193.9	3.0%	596.1	4.0%
Total	6,567.8	2.0%	3,067.2	3.1%	9,635.0	2.4%

Notes: Victorian turnover includes JV partner interest. NSW represents 100% of turnover. Other includes OnCourse, Premium Customers and PGI.

The digital channel returned to double digit growth, with turnover of $938.3 million, up 15.2%. Turnover in the retail channel was $1,552.7 million, down 2.4%.

Quarterly trading

In line with the practice of the majority of ASX100 companies and in an effort to encourage a longer-term view of the company’s performance, Tabcorp will no longer report quarterly revenue updates. Tabcorp will continue reporting on a half-year and full-year basis. The next set of financial results will be the 2016 full-year results to be announced to the market on 4 August 2016.

For more information: Media: Nicholas Tzaferis, GM Corporate Affairs, 03 9868 2529 Financial analysts: Lachlan Fitt, GM Investor Relations & Strategy, 02 9218 1414