Australian racing and wagering giant Tabcorp has pointed to its reformed and modernized Victorian wagering license – as well as greater cost discipline and competitiveness in the market – for a 10.1% year-on-year increase in group-wide revenue to AU$1.33 billion in the six months to 31 December 2024.
Group EBITDA also grew by 12.0% to AU$190.2 million, while net profit after tax was up 25.6% to AU$22.1 million. The company has declared an interim dividend of 1.0 cents per share, unfranked.
Releasing its 1H25 results on Thursday, Tabcorp noted that while its core Wagering & Media segment contributed 11.3% growth to AU$1.24 billion, Wagering alone enjoyed 14.0% year-on-year revenue growth, driven by the assumption of 100% of Victorian revenue following the end of its previous joint venture with the Victorian Racing Industry (VRI). Excluding the VRI impact, domestic wagering revenue increased 0.8%, it said.
Media revenue increased by 1.6% on 1H24, reflecting growth in vision distribution partly offset by the impact of the softer domestic wagering market on turnover-linked revenues, Tabcorp explained
The combined Wagering and Media segment saw EBITDA increase by 16.9% to AU$156.7 million and EBITDA margin by 60bps to 12.6%.
Aside from the impact of the Victoria license, which commenced on 16 August 2024, Tabcorp also cited improved cost controls and more competitiveness in the digital wagering space, although in-venue cash wagering again outperformed online wagering.
“Tabcorp is getting fitter,” said Managing Director and CEO Gillon McLachlan. “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.
“We are executing with a more aggressive cost and capital discipline, targeting opex savings in FY25 of AY$30 million – 50% more than our previous target.
“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.
“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.”
