On your marks, get set ... and they're off.
Spring Carnival, particularly the Melbourne Cup, focuses the country's imagination on racing, games of chance and the prospect of making a few bob. However, this year, the carnival represents more than that.
It has been a terrible year for the horseracing industry, demonstrating just how important protecting business from risk really is. Estimates have placed the number of horses affected with equine flu at 41,514 in New South Wales with around 5220 infected properties.
Last week, Tabcorp Holdings announced its wagering turnover has fallen by $251 million since the outbreak of equine influence in August.
Wagering turnover in NSW was down $184 million or 24 per cent and in Victoria $67 million or 9 per cent.
Tabcorp said it expected turnover to be down by about $550 million before the industry recovers from flu in the new year, assuming Victoria remains unaffected. Annual net profit fell 3.8 per cent to an "unacceptable" $515.6 million, the group said.
Equine influenza would hurt Tabcorp for 6-12 months.
Shares in the company also fell, with investors shaving $336 million off the market value of Tabcorp after the NSW Government said the outbreak would spell the death knell for Sydney's Spring Racing Carnival in Sydney this year. However, the company said it would weather the impact of equine flu through its diversified gambling and entertainment holdings.
Prices now down in the company suggest it may be a good investment stock.
For another tip, riding on last year's success in picking the Melbourne Cup for readers, InvestorDaily has spoken to top punter Sean Bartholomew.
He tips Master O'Reilly for the Cup and for the Oaks, El Daana. His horse to follow over the carnival is Miss Andretti.
