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Australia – Tabcorp’s first quarter up by 18.7 per cent

By - 26 October 2022

Tabcorp, the Australian racing and betting company, saw revenue increase by 18.7 per cent for the first three months of the 2023 financial year to 30 September 2022.

Betting revenue was up 14.2 per cent and digital revenue market share was 24.7 per cent, up from 23.9 per cent in the fourth quarter of FY22 and stable on the comparative period. This again highlights that we have stabilised and improved digital market share after it fell below 24 per cent in FY22.

Bruce Akhurst, Chairman of TABCORP, said: “Our financial results were again heavily impacted by COVID-19, with retail and venue shutdowns in our two largest markets of NSW and Victoria in the first half, impacting our Wagering and Media and Gaming Services business, while unprecedented wet weather in the second half further impacted our Wagering and Media business. Despite this, our business remains financially strong. Group EBITDA from continuing operations before significant items was $382m. Pleasingly, following the end of COVID-19 related lockdowns, the performance of our business has improved.

“Tabcorp’s 2022 financial year heralded the start of a new era for our company. A line in the sand for us. We successfully completed the demerger of the Lotteries and Keno business on 1 June 2022 – on time and with strong support from our shareholders. We are confident that the Demerger will generate long term value for shareholders, with each business now able to adopt more focused operating structures and strategies, and shareholders better able to value each business on a standalone basis.

“The demerger has allowed us to renew our Board and executive team and embark on an urgent
transformation of our business. We have a clear strategy that is focused on growth and are moving at pace to transform Tabcorp into a more competitive and profitable digital wagering and integrity services business.

In the first month following the demerger Tabcorp secured proposed reforms in Queensland which, when implemented, will ensure thatin Queensland, Tabcorp will no longer pay more wagering taxes and fees than foreign online bookmakers. This will allow Tabcorp to compete on a level playing field for the first time.

Mr Akhurst said: “We commend the Queensland Government for delivering fair and much needed reforms that ensure the long term sustainability of the racing industry in this State. Since then, the ACT and NSW governments have announced changes to point of consumption tax rates, marking further progress towards allowing us to compete on a level playing field.”

The company launched its new TAB App was launched in September – on time and before the important Spring Racing Carnival. The launch of the new App has had an immediate impact with customers, with a 16 per cent increase in weekly active users compared to the six weeks prior to launch.

Managing Director and CEO, Adam Rytenskild, said: “The new App is nine seconds faster than the old App to place a bet and is simpler for our customers to use. Our customers love it – we know that because the figures tell us that. Compared to the six week period prior to launch, there’s been an 16 per cent increase in active weekly customers, a seven per cent increase in the average bet and a 33 per cent increase in reactivations. TAB Everest Day was TAB’s highest turnover day on a NSW meeting in the history of our business.”

“But this is more than a new App. It’s a whole new digital platform. We’re using Google Flutter technology which has allowed us to increase development speed by 160 per cent. The digital release cycle is down from four months to just four weeks, and will get faster from there.”

Last year, the company announced its intention to sell non-core eBet business and in September announced it had entered into an agreement to sell the business for $62m, subject to usual working capital and other minor adjustments.

Mr. Akhurst said: “We are pivoting our Gaming Services business to be a provider of integrity services to government and recently won the licence to monitor all electronic gaming machines in pubs and clubs in Tasmania. And earlier this month we announced that we had entered into an agreement to acquire a 20 per cent equity interest in fast growing social betting company Dabble. This strategic investment will give us exposure to innovative product capability and a younger customer base and it aligns with our strategy to grow digital revenue market share.

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