Australian racing and wagering giant Tabcorp saw group-wide revenue grow 4.4% to AU$2.91 billion in the six months to 31 December 2019, led by strong growth in its Lotteries and Keno segment where digital turnover continued to rise.
The revenue rise helped push net profit after tax for the period up by 10.8% to AU$198.8 million, with EBITDA rising 2.1% to AU$596.5 million.
“Tabcorp’s diversified group of businesses delivered a solid overall result in the first half of FY20,” said Managing Director and CEO David Attenborough. “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.”
Lotteries and Keno was the company’s big mover, with revenue up 12.4% to AU$1.58 billion and EBITDA by 16.0% to AU$294.9 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.
Revenues in Wagering and Media fell 3.7% to AU$1.18 billion and EBITDA by 7.8% to AU$233.8 million, with Tabcorp pointing to a soft market for the decline.
Gaming Services also suffered a decline of 4.4% to AU$149 million, with EBITDA falling 14.1% to AU$65.9 million on the back of multiple contracts expiring and one not being renewed.
Attenborough described the Gaming Services performance as unsatisfactory but said, “We are reviewing this business to improve performance and realize its full potential.”
He also provided an update on the long integration process between Tabcorp and Tatts Group following their AU$11 billion merger in late 2017.
“We are in the final phase of the long and complex process that has been the Tabcorp-Tatts integration and remain on track to deliver our FY21 target of EBITDA synergies and business improvements of between AU$130 million and AU$145 million,” Attenborough said.
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