Tabcorp reported the impact of its new Victorian rates licence, as well as cost optimisation and market competitiveness, to drive group revenue up 10.1% year-on-year to A$1.33 billion for the six months to 31 December 2024.
Group EBITDA also rose 12.0% to A$190.2 million, while net profit after tax increased 25.6% to A$22.1 million. The company declared an interim dividend of 1.0 cent per share, excluding franking.
Tabcorp, releasing its H1 2025 results on Thursday, noted that while its core Betting and Media segment contributed 11.3% of growth to A$1.24 billion, Betting alone delivered revenue growth of 14.0% year-on-year, driven by the assumption of 100% revenue in Victoria following the end of the previous agreement with the Victorian Racing Industry (VRI). Excluding the impact of VRI, domestic betting revenue increased 0.8%.
Media revenue increased 1.6%, reflecting growth in vision distribution, partially offset by the impact of a weaker domestic betting market on turnover-related revenue, Tabcorp explained.
In the combined Betting and Media segment, EBITDA increased 16.9% to A$156.7 million, with the EBITDA margin up 60 basis points to 12.6%.
In addition to the impact of the Victoria licence, which came into effect on 16 August 2024, Tabcorp also noted improved cost control and greater competitiveness in digital betting, although cash casino betting once again outpaced online betting.
“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.”
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