Australia – Tabcorp ’emerging from COVID-19 in a stronger financial position.’By Phil - 18 February 2021
Australian betting giant has reported a ‘strong recovery following COV_19 challenges’ with group revenue down just 1.5 per cent in its half year results adding that it is actually ’emerging in a stronger financial position.’
Lotteries and keno revenues were up 1.6 per cent to $1,609m, digital lotteries turnover grew 20.9 per cent whilst wagering and media revenues were $1,189m, up 0.8 per cent. Gaming was still to recover though with revenues down 51 per cent to $73m.
Tabcorp Managing Director and CEO David Attenborough said: “We are experiencing a strong recovery following the recent market challenges. The COVID-19 pandemic continued to impact Tabcorp’s group earnings in 1H21, with the retail closures and restrictions, especially in Victoria, having a material impact. However, we are pleased with the way our teams and partners responded to the substantial operational challenges the pandemic presented.
“COVID-19 has clearly demonstrated the importance of serving customers with a seamless, multi-channel experience. Investments made to modernise our digital offering in recent years drove significant benefits.
“Our Lotteries & Keno business delivered strong digital growth and an excellent performance across the whole portfolio, including the refreshed Set For Life and Saturday Lotto games. Over the last three years we have demonstrated a strong track record of refreshing and relaunching lottery games to grow customer engagement and rejuvenate the player experience.
“Our Wagering & Media business also delivered strong digital growth; however its earnings were impacted by the COVID-19-related shutdowns and restrictions, especially in Victoria. These factors also heavily impacted Gaming Services and substantially diminished its ability to generate revenues in the period.
“After taking actions to reduce costs, preserve cash and strengthen the balance sheet over the past 12 months, Tabcorp is emerging from the COVID-19 challenges in a stronger financial position. This has allowed us to resume paying dividends to shareholders. Eligible shareholders will receive an interim dividend of 7.5 cents per share fully franked, in line with the previously announced revised dividend payout policy.”
“Tabcorp has an improved financial position and outlook as we emerge from the challenges of COVID-19,” Mr Attenborough added. “All three businesses are well positioned for the second half and we will continue to unlock digital growth,ndrive operational improvements and optimise costs.
“We are committed to working with our industry partners to help them recover from the disruption COVID-19nhas had on their operations. We are also committed to helping our industry partners reconnect with their customers and reinvigorate venues and racetracks across Australia.”