Tabcorp's revenue up 10% in 2H24, details strategic shift
Australia’s largest betting agency, Tabcorp Holdings has reported a 10.1 percent rise in revenue for the second half of 2024. The company reported a group revenue of AU$1.33 billion ($847.7 million). Tabcorp has attributed this growth to increased focus on operational efficiency, reformed Victorian Wagering and Betting License, and cost management.
For the period, earnings before interest taxes depreciation and amortisation (EBITDA) saw an of 12 percent, totaling AU$190.2 million. Net profit after tax (NPAT) before significant items rose by 25.6 percent to AU$22.1 million. Statutory NPAT also made a strong recovery, reaching AU$25.3 million from a significant loss of AU$636.8 million in the same period the previous year.
Earnings per share increased from a loss of 28.2 cents in 2023 to a positive 1.1 cents in 2024. Tabcorp also declared an interim dividend of 1.0 cent per share, unfranked.
Gillon McLachlan, Managing Director and CEO, underlined that “Tabcorp is getting fitter” as it proceeds with “more aggressive cost and capital discipline” and an evolving strategy to unlock value within its “unique asset base.” McLachlan also emphasised the company’s focus to grow by improving its omni-channel offerings and delivering exceptional wagering experiences.
Tabcorp’s troubles and cost-cutting
Last year, Tabcorp was hit with a record $4.6 million fine after a Victorian Gambling and Casino Control Commission (VGCCC) investigation found significant breaches of responsible gambling regulations. These violations occurred between August 2020 and February 2023, highlighting serious shortcomings in Tabcorp’s adherence to its betting licence and responsible gambling code.
However, the company was still awarded Victorian Wagering and Betting License for the next 20 years effective August 2024, following a competitive licensing process.
The company has since implemented changes to its executive leadership team as part of its strategic growth ambitions. In addition, cost-saving measures have been implemented that increased its targeted operational expense savings for the financial year of 2025 to AU$30 million, up from an earlier target of AU$20 million.
As part of its cost-saving measures, the company slashed 20 percent of the workforce to cut costs and simplify its business in December.
Looking ahead
Tabcorp has revised its capital expenditure guidance for FY25, lowering it to between AU$110 million and AU$120 million, approximately AU$25 million lower than previous projections. In addition, Tabcorp is looking to innovate in the tote market, which could lead to the creation of a single national tote that could transform the betting experience for customers.
