SPORTS BETTING
Tabcorp’s revenues down 3.9 per cent despite return of in-person bettors
By Phil - 23 October 2024
Australian operator Tabcorp recorded full-year revenue of $2.34bn, down 3.9 per cent on the prior year, primarily reflecting the softer wagering market conditions and the sale of eBet and MAX Performance Solutions in Gaming Services.
The positive was a return of in-person betting which out-performed Tabcorp’s online business. Group EBITDA before significant items was $317.7m, down 18.7 per cent on the prior year.
Bruce Akhurst, Executive Chairman, said: “Our overall financial results were impacted by a softer wagering market and trading environment due to continued inflationary pressures and sustained higher interest rates, as well as a tightening regulatory environment. Pleasingly, wagering turnover and net revenue performed well relative to major competitors, driven by improved digital competitiveness and our unique omni-channel offer. Digital wagering revenue was down 2.2 per cent over the year and flat in the second half. Cash wagering revenue increased by 5.3 per cent in the second half of the year, out-performing the digital market and highlighting the value in our retail business – particularly as people return to pubs and clubs post COVID and in a higher inflationary environment that makes more cost-effective entertainment appealing.”
The Group reported a net loss after tax of $1.36bn after incurring non-cash impairment charges totalling $1.38bn (after tax) relating to its Wagering business, and other significant items totalling $11.3m (after tax).
Mr Akhurst added: “The impairment at the full year related predominantly to our NSW and South Australian wagering assets, highlighting the urgent need for structural reform and a level playing field in those States, for which we continue to strongly advocate.”
Tabcorp was awarded the new exclusive Victorian Wagering and Betting Licence – securing the company’s future in the State for the next 20 years.
Mr Akhurst added: “We increased our speed to market, releasing more new digital wagering products than our competitors – improving our digital competitiveness and leading to TAB outperforming our
biggest competitor at a turnover and revenue level. We upgraded 31 high-performing TAB retail venues across NSW, Victoria and Queensland –with an immediate response from customers with these venues outperforming other venues in the network. We continued our progress on transforming the company into a simpler, leaner organisation through our Genesis program, delivering $25m in savings before tax during the year.”
