It has been almost a month since Tabcorp spun off its lottery business. How has it performed?
The post How has the Tabcorp share price been performing since the demerger? appeared first on The Motley Fool Australia. –
The Tabcorp Holdings Limited (ASX: TAH) share price was on form on Tuesday.
The gambling companyâs shares ended the day up 1% at $1.06.
What drove the Tabcorp share price higher?
There were a couple of catalysts for the rise in the Tabcorp share price on Tuesday.
One was a rebounding ASX 200 index, which lifted most shares. The other was news that the announcement of wagering tax changes in New South Wales.Â Tabcorp believes the latter is âa further positive step toward industry reform.â
From 1 July 2022, New South Wales will increase the Point of Consumption Tax (POCT) rate payable by wagering operators from 10% to 15%.
Tabcorp will receive transition payments over an 18-month period from the commencement of these changes to ensure it is no-worse off relative to its current tax obligations as a result of the changes.
Had these transition payments not been applied, based on Tabcorpâs calendar year 2021 NSW revenues, its EBITDA would have been approximately $16 million lower.
Tabcorpâs Managing Director and Chief Executive Officer, Adam Rytenskild, was pleased with the news but will push for further reforms.
Today is a positive step forward in levelling the playing field in NSW. Online bookies will pay a greater share of wagering tax which can be invested back into the local racing industry and ensures a fairer system.
We welcome the NSW Governmentâs announcement. Online betting has changed substantially since the TABâs licences were issued and this is an opportunity to better align with the modern economy. The Queensland Government has recently announced reforms to create a level playing field and NSW is now a step closer to a level playing field.
How have Tabcorpâs shares been performing since the demerger?
On 24 May, the companyâs shares closed the session at $1.055 cents, just a touch lower than current levels.
Though, it is worth noting that Tabcorpâs shares continued to slide in the days that followed and closed at 90.5 cents on 1 June. So, anyone buying at that point would have done very well.
The post How has the Tabcorp share price been performing since the demerger? appeared first on The Motley Fool Australia.
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