Lottery drives Tabcrop revenues in 2H19

Australian gaming giant sees revenues from lotteries and keno increase 12.4% to AU$1.58 billion in 2H19.

Australia.- Tabcorp has revealed a significant increase in revenues last year driven by its lottery division.

The racing and wagering giant saw a growth of 4.4% to AU$2.91 billion in the six months to 31 December 2019.

Lotteries and Keno was the company’s big mover, with revenue up 12.4% to AU$1.58 billion (€976 million) and EBITDA by 16.0% to AU$294.9 million (€182 million).

Digital turnover in the segment grew 39.8% to represent 26.7% of total Lotteries turnover, compared with 15.6% two years ago, Tabcorp noted.

The revenue rise helped push net profit after tax for the period up by 10.8% to AU$198.8 million (€122.9 million), with EBITDA rising 2.1% to AU$596.5 million (€368.7 million).

“Tabcorp’s diversified group of businesses delivered a solid overall result in the first half of FY20,” Managing Director and CEO, David Attenborough, said.

“We grew group revenues by 4.4% in an environment of soft discretionary spending, while undertaking significant integration activity. We also welcomed another 300,000 active registered customers during the period.”

Revenues in Wagering and Media fell 3.7% to AU$1.18 billion (€729 million) and EBITDA by 7.8% to AU$233.8 million (€144.5 million), with Tabcorp pointing to a soft market for the decline.

Gaming Services also suffered a decline of 4.4% to AU$149 million (€92 million), with EBITDA falling 14.1% to AU$65.9 million (€40.7 million) on the back of multiple contracts expiring and one not being renewed.

Regarding the company’s Gaming Services performance, Attenborough said: “We are reviewing this business to improve performance and realize its full potential.”