Tabcorp posts full-year loss of US$951.1m

The company posted revenue of AU$2.34bn (US$1.59bn).

Australia.- Tabcorp Holdings has shared its financial results for the financial year 2024. It posted a statutory net loss after tax of AU$1.4bn (US$951.1m), including non-cash impairment charges totalling $1,37bn (US$966m).

The impairment charges were due to the delayed recovery in the Australian wagering market in the latter part of the financial year as increased inflation and interest rates resulted in reduced betting. Revenue was down 3.9 per cent year-on-year to AU$2.34bn (US$1.59bn) while EBITDA was down 18.7 per cent to AU$317.7m (US$216m) and net profit after tax was down 66.8 per cent to AU$28m (US$19.0m).

Wagering and media revenues were AU$2.16bn (US$1.47bn), down 3 per cent. Digital wagering revenue was down 2.2 per cent and media revenue declined 6.2 per cent.

Gillon Mclachlan, managing director and CEO, said: “It is clear the business will not meet its TAB25 targets. It is my job to unlock an enhanced cadence with a focus on people and capability. As we evolve, we’ll be better placed to continue executing on the growth opportunities.

“Today’s results demonstrate a competitive performance in the soft market conditions we face. It shows customers are responding to the improved product offering and there’s no doubt the business is more competitive today than it was at demerger, but it’s not where it ultimately needs to be. It will require change but the goal remains unchanged.

“The building blocks are there to create the complete sports entertainment business. To achieve this, there will be a new cadence at Tabcorp which will ultimately unlock significant value for shareholders. “Importantly, I want to stress that customer safety is personally very important to me. The evolution of technology and our processes to identify problem gamblers faster will not be compromised as we unlock additional value within the company.”

The company said it expects the macro-economic environment for customers to remain challenging given expectations around interest rates, high inflation levels and a tighter regulatory environment.

See also: VGCCC fines Tabcorp for non-compliance