Shares of Tabcorp Holdings Ltd (ASX: TAH) fell as much as 1.3% today on the back of a market sensitive market release this morning.
In an announcement to the ASX, Tabcorp said its broadcasting arrangements with the Victorian thoroughbred racing industry expired at midnight last night.
It has been in negotiations with the Victorian thoroughbred racing industry since December 2012 and submitted a formal offer on 1 June 2015, but no deal has since been reached.
The thoroughbred racing package is integrated in Tabcorp's local and international offerings, and includes the ability to broadcast 44 meetings each year on Channel Seven and other free-to-air television.
Tabcorp's Media and International business operates three Sky Racing television channels featuring thoroughbred, harness and greyhound racing, as well as other sports, which are available on personal devices and in a number of hotels, clubs and TAB outlets.
As a result of being unable to reach an agreement, the company said, "while wagering on Victorian thoroughbred racing will continue to be available, it will not be supported by vision on the Sky Racing channels, outside of the 92 Victorian TAB agencies."
During the 2014 financial year, Tabcorp's Media business generated revenues of $220 million and earnings before interest and tax (EBIT) of $58.7 million. The latter is equivalent to roughly 18.7% of the group total.
