Tabcorp shares half year financial results

Tabcorp’s revenue was up 10.1 per cent in year-on-year terms.

Australia.- Tabcorp has shared its financial results for the first half of the financial year 2025, reporting AU$1.33bn (US$846m) in revenue. The figure was up 10 per cent year-on-year. The company attributed the growth to the reformed Victorian Wagering and Betting Licence, which commenced on August 16 2024.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) was up 12 per cent to AU$190.2m (US$121m), while net profit after tax was up 25.6 per cent to AU$22.1m (US$14m). Tabcorp declared an interim dividend of 1.0 cents per share, unfranked.

Wagering and media revenue was AU$1.24bn (US$790m), up 11.3 per cent. Wagering revenue alone was up 14.1 per cent driven by the assumption of 100 per cent of Victorian revenue following the end of the joint venture with the Victorian Racing Industry (VRI). Excluding the VRI impact, domestic wagering revenue increased 0.8 per cent. Media revenue increased 1.6 per cent.

Wagering and Media EBITDA was up 16.9 per cent year-on-year to AU$156.7m (US$100m) and EBITDA margin by 60bps to 12.6 per cent.

The company said: “Tabcorp’s performance in 1H25 demonstrates that Tabcorp is getting fitter. We have increased wagering and media capability, created a simpler more cost-effective operating model and are operating with a new cadence and increased accountability.

“Our improved earnings reflect the benefits of the reformed Victorian Licence, cost and capital discipline, and strong execution during the half. “The company is targeting FY25 operating cost savings of AU$30m (US$19m), an increase from the AU$20m (US$13m) target announced in August 2024.

“FY25 capital expenditure is expected to be in the range of AU$110m-AU$120m. FY25 depreciation and amortisation is expected to be in the range of AU$200m-AU$210m. While the wagering market has continued to remain soft, we have seen a modest improvement in recent months. Our focus will remain on executing our evolved strategy and business transformation.”

Gillon Mclachlan, managing director and CEO, said: “Tabcorp is getting fitter. We have increased our wagering and media capability at the leadership level, developed a simpler, more cost-effective operating model, and are operating with a bias for action and increased accountability.

“The improvement in earnings reflects the commencement of our reformed Victorian Licence, cost discipline and increased competitiveness that was amplified with new innovations during the TAB Everest, Melbourne Cup Carnival and Magic Millions.

“We are executing with a more aggressive cost and capital discipline, targeting opex savings in FY25 of AU$30m, 50 per cent more than our previous target. Capex is expected to be AU$110m-AU$120m, around AU$25m lower than previous guidance. As we improve execution we will transition to an evolved strategy, with a broader focus on unlocking the value which lies within our unique set of assets.

“We are digitally competitive, and our second half will be about operational growth through our omnichannel offering. We will build on our digital progress to enable a broader set of strategic initiatives that will allow us to take advantage of our unique asset base.

“We are looking, acting and thinking bigger. The TAB Takeover promotion across the Spring Racing Carnival is an example of how we can have more impact in the market by leveraging our retail and media channels to promote our wagering offering. There will be greater integration between these assets to create more personalised experiences for customers. We will have a stronger focus on tote and tote innovation, including continuing to explore a single National Tote.

“Today’s pleasing results demonstrates a company executing better. The outcomes of an improved cadence and a culture of accountability. We have taken significant action over the last six months to improve our cost and capital discipline which you can see today.

“When I joined Tabcorp I said I was drawn to the value that can be unlocked within our unique set of strategic assets. Unlocking that value and taking a broader strategic focus will be the key to growing value for shareholders in the years ahead.”