Tabcorp reports strong growth in 2H24, details strategic shift
Tabcorp Holdings Limited reported solid performance for the second half of 2024, with group revenue rising by 10.1 percent yearly to AU$1.33 billion ($847.7 million) and EBITDA increasing by 12 percent to AU$190.2 million ($121.2 million), compared to the same period the previous year.
The company attributed its growth to the reformed Victorian Wagering and Betting License, improved cost discipline, and enhanced operational efficiency.
Last year Tabcorp was handed a record fine of AU$4.6 million ($3.08 million) by the Victorian Gambling and Casino Control Commission (VGCCC) after an investigation found ‘several instances of non-compliance with its regulatory obligations’.
However, it was still awarded a 20-year wagering and betting licence effective August 2024, something it stated created a ‘level playing field for wagering taxes and fees in Victoria’
and enhanced Tabcorp’s ongoing competitiveness.
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.”
He emphasized the company’s focus on operational growth through its omni-channel offering and a commitment to delivering unrivaled wagering entertainment experiences.
Looking ahead, Tabcorp aims to capitalize on its strategic assets to enhance shareholder value while maintaining cost efficiency and operational discipline
Net profit after tax (NPAT) before significant items climbed 25.6 percent to AU$22.1 million ($14.1 million), while statutory NPAT was AU$25.3 million ($16.1 million), a strong turnaround from a net loss of AU$636.8 million ($406.1 million) in the second half of 2023. Earnings per share rose to 1.1 cents from a loss of 28.2 cents the previous year. An interim dividend of 1.0 cent per share, unfranked, was announced.
Tabcorp’s Wagering & Media revenue grew by 11.3 percent, driven by a notable 18.2 percent increase in cash wagering net revenue. Integrity Services also showed strong growth, with EBITDA up 18.4 percent supported by a 9.7 percent rise in revenue.
Strategic Initiatives and Cost Management
The company has implemented a new leadership structure and introduced cost-saving
measures that increased its targeted operational expense savings for FY25 to AU$30 million ($19.1 million), up from an earlier target of AU$20 million ($12.7 million).
Actions taken to reduce operating costs include embedding strong cost discipline, employee headcount reductions, and discretionary spending reductions. A review of all capital expenditure (capex) and re-prioritisation of projects in line with an evolved strategy was undertaken.
Capital expenditure is expected to be between AU$110 million ($70.2 million) and AU$120 million ($76.6 million), approximately AU$25 million ($15.9 million) lower than previous guidance.
Tabcorp announced an evolved strategy aimed at leveraging its unique assets, including a stronger focus on digital competitiveness and integrating its retail and media channels for a seamless omni-channel experience.
The company plans to innovate in the tote market, explore a single national tote, and develop a standalone media entertainment business to expand its reach globally.
https://agbrief.com/news/australia/21/02/2025/tabcorp-reports-strong-growth-in-2h24-details-strategic-shift/