Australia’s Tabcorp reports a 2.2% increase in revenue

Tabcorp is close to finalising the demerger of its lottery and keno businesses.
Tabcorp is close to finalising the demerger of its lottery and keno businesses.

Tabcorp’s first-half results for the first half were been boosted by the company’s lottery and keno operations.

Australia.- Racing and sports betting firm Tabcorp has reported an increase in revenue in the first half to AUD2.93bn (US$2.11bn). That’s a 2.2 per cent increase from the prior period, boosted by lotteries and keno operations.

Back in July, Tabcorp announced its intention to demerge its lotteries and Keno businesses to create two separate companies: Lotteries & KenoCo, covering lotteries and Keno, and Wagering & GamingCo, covering wagering, media and gaming Services. The decision was taken following a strategic review of all relevant structural and ownership options to maximise value for shareholders.

Group-wide profit fell 5.4 per cent year-on-year to AUD175m (US$126m), but lotteries and keno recorded a 10.9 per cent increase in revenue to AUD1.74bn (US$1.25bn). EBITDA rose15.1 per cent to AUD358m (US$258m).

The sports betting and media segment retracted 9.8 per cent to AUD1.07bon (US$770m). The division’s EBITDA dropped 34.8 per cent to AUD148m (US$107m). However, this was mostly due to the obligatory shuttering of retail operations in NSW because of pandemic restrictions.

CEO David Attenborough said: “The record result from the Lotteries & Keno business again showcased the broad appeal of the business’ much-loved products and brands, and the success of its omni-channel strategy.”

“While the Wagering & Media business was significantly impacted by the retail lockdowns imposed in NSW and Victoria, its performance across all channels improved once restrictions were lifted. The Wagering & Media business, and its digital performance, is much stronger when venues are open and customers can participate fully in the omni-channel experience, which is a key strategic point of difference.

“As we have throughout the pandemic, our focus was on managing the operational and financial impacts on our businesses, as well as prioritising our people’s wellbeing and supporting the recovery of our business partners.”

See also: Tabcorp to spin off its businesses

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