Tabcorp ‘getting fitter’ as benefits of the reformed Victorian betting licence pays off
Australian betting giant Tabcorp said it was ‘getting fitter’ having generated revenue of $1,331.3m in the first half of the year, up 11.2 per cent and reflecting the benefit of the reformed Victorian Wagering and Betting Licence (Victorian Licence), which commenced on 16 August.
Total wagering revenue was up 14.1 per cent driven by the assumption of 100 per cent of Victorian revenue following the end of the joint venture with the Victorian Racing Industry (VRI). Excluding the VRI impact, domestic wagering revenue increased 0.8 per cent. Domestic turnover declined 4.3 per cent reflecting soft trading conditions, however this was offset by higher net yields from favourable results and generosity efficiency.
Managing Director & Chief Executive Officer Gillon McLachlan said: “Tabcorp is getting fitter. 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 that was amplified with new innovations during the TAB Everest, Melbourne Cup Carnival and Magic Millions. We are executing with a more aggressive cost and capital discipline, targeting opex savings in FY25 of $30m, 50 per cent more than our previous target. Capex is expected to be $110m-$120m, around $25m lower than previous guidance.
“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.
“We are looking, acting and thinking bigger. The TAB Takeover promotion across the Spring Racing Carnival is an example of how we can have more impact in the market by leveraging our retail and media channels to promote our wagering offering. There will be greater integration between these assets to create more personalised experiences for customers. We will have a stronger focus on tote and tote innovation, including continuing to explore a single National Tote.
“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.”
