Tabcorp posts US$880m in revenue for H1

The company rebounded to see strong growth in group revenue and EBITDA.

Australia.- Tabcorp has shared its financial results for the first half of the financial year 2023, reporting AU$1.28bn (US$880m) in revenue. The figure was up 11 per cent when compared to the previous year.

Statutory Net Profit after Tax (NPAT) was AU$52m, and EBITDA was AU$197m, a 24 per cent increase. Tabcorp reported a 58 per cent growth in cash wagering revenue following a strong rebound from a Covid-19-impacted 2022.

Revenues in the wagering and media business increased by 9 per cent year-on-year to AU$1.17bn with digital revenue down from AU$579m to AU$493m. Digital revenue market share was 25.1 per cent, in line with the first half of the year 2022.

Despite a decline in digital turnover from AU$5.26bn to AU$4.92bn, Tabcorp’s active users rose from 780,000 to 797,000, suggesting continued demand for digital products despite the full reopening of retail.

In game services, revenue rose 35.9 per cent to AU$108.8m. This includes Integrity Services revenue of AU$57.9m, up 31.9 per cent year-over-year, while other event services revenue also rose 42.6 per cent to AU$50.9m.

Six-month operating expenses were AU$323.2m, up 4.1 per cent year-over-year. Tabcorp recorded variable contributions of AU$519.8m and amortisation charges of AU$123.4m.

Tabcorp Managing Director and CEO Adam Rytenskild, said: “Today’s results highlight that our transformation strategy, which commenced on 1 June 2022, is working. 

“Our business has rebounded strongly from a Covid-19 impacted first half last year to experience strong growth in Group revenue and EBITDA. The Covid-19 lockdowns presented an opportunity for digital only operators, but our retail customers have quickly returned and our digital transformation is amplifying that opportunity.

“I’m particularly pleased that, with new entrants entering the market and retail venues reopening, TAB held digital revenue market share for the first time since 2019. To retain our market share, while a new entrant took share from competitors and retail reopened, highlights that customers are loving the new TAB App.”

Rytenskild said Tabcorp is targeting 30 per cent ofdigital revenue market share by 2025.

He said: “We’ll do this with a transformation of our entire wagering ecosystem, including new products for punters, a reinvigoration of Sky Racing that will include a greater integration with TAB and the implementation of our new marketing strategy. 

“The successful launch of the new TAB App, which helped us retain digital market share despite the introduction of a new competitor, has provided a strong launch pad to reach our 30 per cent target.” 

See also: Tabcorp launches legal action against Entain over NSW pubs deal