Australian racing and wagering giant Tabcorp reported an 11.8% year-on-year increase in revenue to AU$2.61 billion (US$1.69 billion) and a 23.2% increase in EBITDA to AU$391.5 million (US$254 million) for the 12 months to 30 June 2025, aided by its reformed Victorian Wagering and Betting Licence and “modestly improved” trading conditions.
Releasing its FY25 results on Wednesday, the company pointed to improved results across both core operating segments. Its primary Wagering & Media segment recorded a 12.8% year-on-year increase in revenue to AU$2.44 billion (US$1.58 billion) – driven by the assumption of 100% of Victorian revenue following the end of the joint venture with the Victorian Racing Industry (VRI). Excluding the VRI impact, domestic wagering revenue decreased by 0.7% and turnover by 2.2%, “reflecting soft but modestly improving trading conditions throughout the year”.
Wagering and Media EBITDA of AU$329.1 million (US$214 million) increased by 31.0% and EBITDA margin expanded 190bps to 13.5%, Tabcorp explained.
The smaller Integrity Services segment saw revenue grow by 7.8% to AU$175.8 million (US$114 million) due to CPI-linked fee increases, an increase in the number of monitored EGMs and growth in project work. The growth in revenue delivered underlying EBITDA growth of 5.8% to AU$62.4 million (US$40.5 million) and an EBITDA margin of 35.5%, the company added.
As a result, Tabcorp recorded a net profit before significant items of AU$49.5 million (US$32.1 million), up 76.8%. The company has declared a final dividend of AU$0.01 per share.
“Today’s pleasing results are the outcome of creating a fitter company,” said Tabcorp Managing Director & Chief Executive Officer, 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.
“We have an evolved strategy with a broader focus on unlocking the value that lies within our unique asset base. We have commenced executing the strategy, including the creation of a structurally profitable retail business that will in time increase patronage to pubs and clubs with a true omnichannel offering.
“The improvement in earnings also reflects our refreshed customer offering as we activate unique offers such as the TAB Takeover and TAB Time that bring to life our omnichannel assets, and the seamless commencement of the new Victorian Licence, which is delivering earnings in line with expectations given soft trading conditions.
“Now that we are digitally competitive our focus has broadened to using our entire asset base to create the ultimate sports and racing entertainment experience. This is the omnichannel offering that will drive growth in the future.
“When I joined Tabcorp I said I was drawn to the value that can be unlocked within our unique set of strategic assets, but to do that we needed to get fit.
“Today we are a fitter business. A business with an improved cadence, a simpler, more cost-effective operating model and an improved culture of cost and capital discipline. We have a clear strategy and clear lines of accountability that are allowing us to execute on a bolder strategic plan.”
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