Australia's Tabcorp H1 profit slips; beats forecasts

MELBOURNE Feb 4 (Reuters) - Tabcorp Holdings (TAH.AX), Australia's largest gaming group, reported a 2 percent drop in first-half net profit, as fees on horse races rose and punters had less to spend without government cash handouts.

Net profit fell to A$257.9 million ($227.8 million) in the six months to December from A$263.2 million a year earlier, but beat an average of five analysts' forecasts at A$$251 million.

Tabcorp warned conditions were uncertain for the year to June 2010.

Tabcorp is trying to fill a looming hole in its earnings from 2012, when it is due to lose its duopoly on gaming machines in the state of Victoria, by spending A$575 million to spruce up and expand its Star City casino complex in Sydney.

Its shares have fallen 3.2 percent over the past six months lagging a 6.6 percent rise in the broader market over the same period. (Reporting by Sonali Paul; Editing by Balazs Koranyi