Australian racing and wagering giant Tabcorp reported an 11% increase in group-wide revenue to AU$1.28 billion (US$884 million) in the six months to 31 December 2022, boosted by the return of retail customers plus the company’s increased focus on digital wagering.
Releasing its financial results for 1H23 early Tuesday morning (Australian time), Tabcorp also reported a 24% increase in Adjusted EBITDA to AU$197 million (US$136 million), with net profit after tax reaching AU$52 million (US$36 million). This was the first time the company has published interim results since demerging from its lottery business, which is now listed separately as The Lottery Corporation.
The H1 results included a 9% increase in revenue in the Wagering and Media division – which incorporates the TAB and SKY Racing – to AU$1.17 billion (US$808 million). Gaming Services, which incorporates EGM monitoring and management, saw revenue climb 37% to AU$109 million (US$75 million) with EBITDA more than doubling to AU$43 million (US$30 million).
Tabcorp Managing Director and CEO Adam Rytenskild said the company was well on track in its transformation strategy since the lotteries demerger, with the strategy in part aimed at clawing back wagering share from corporate bookmakers.
“Our business has rebounded strongly from a COVID impacted first half last year to experience strong growth in Group revenue and EBITDA,” Rytenskild said. “The COVID 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.
“The demerger has been seamless and the separation from The Lottery Corporation remains on track.
“Tabcorp is doing what we say we will do – we have unshackled ourselves post the demerger with a new energy, capability and offers for our customers. We will continue to build on that.”
Tabcorp has announced an interim dividend of 1.3 cents per share fully franked, payable on 21 March 2023.
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