re: tts/redfaces. of course TTS can expand. However, finding...

re: tts/redfaces. of course TTS can expand. However, finding expansion at the right price is far from straigtforward.

1) expansion in wagering in Australia by way of acquisition of a totalisator business - would only come at a full price. There are one or two totalisators that are still to be privatised - but UTB and TAH would both be vigorous competitors for these.

2) expansion in wagering / sportsbetting by way of establishing a betting exchange (eg. Betfair) or acquiring a sportsbetting agency - both possible. However, betting exchanges yet to gain hold in Australia, and TTS would be playing second fiddle to Packer/Betfair. Sportsbetting is a notoriously fickle business as price competition is so high and customer loyalty so low.

3) buy or build a casino - all major australian properties are in hands of long-term owners, if any minor properties (eg. Tasmania) were to come onto the market, expect that competition would be reasonably strong and there would be no bargains to be had. Therefore, little value created.

4) international expansion - maybe. South African activities of TTS do look promising - although not sufficiently large to make a material difference to value in the short to medium term.