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  • H1 2024: Tabcorp shares slump on revenue decline and major loss
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Shares in Tabcorp experienced a 10% drop after the operator posted a loss of A$637m and a 5% revenue decline for the six months to 31 December 2023 (H1 2024).

Tabcorp attributed the loss mainly to a non-cash impairment charge of A$731.9m within its wagering and media division, influenced by higher tax rates, as well as inflation and rising interest rates which have impacted consumer spending.

Group revenue reached A$1.21bn, down 5% on H1 2023, while group EBITDA decreased 14% to A$170m year-on-year. 

Wagering and media revenue for the period declined by 4% to A$1.12bn, and gaming services revenue for the first half of FY2024 decreased by 14% to A$93m compared to the previous year.

Transformation on track

Nonetheless, CEO Adam Rytenskild insisted: “Tabcorp’s transformation is on track.”

Rytenskild underscored the company’s continuous digital evolution, noting an increase in overall market share compared to earlier periods. 

“We have become a more digital business, underpinned by recent investments in AI, data and new technology platforms. 

“Combined with our TAB brand embedded in over 4,000 venues, we see a significant omni-channel opportunity that we are yet to capitalise on,” he said. 

Moreover, in December, Tabcorp secured a new exclusive licence for retail wagering and betting in pubs in Victoria.

“The new Victorian licence is a game changer for TAB and will generate an immediate step-change in earnings in Victoria from August. 

“Had the licence been in place during FY23 EBITDA would have been $140m higher on a pro forma basis,” Rytenskild pointed out. 

He stressed that Tabcorp will continue executing its TAB25 strategy, through which the company aims to capture 30% of online betting market share by revenue in Australia, deliver significant cost savings and double its return on invested capital in FY25.

“This is transforming our competitiveness, continuing to improve market share trends and creating a more efficient and effective organisation.”

A healthy market

However, in January 2024, group revenue declined by 3.9% compared to January 2023, while wagering turnover was down 5.4%. 

Rytenskild remained optimistic: “Today’s results are solid given market conditions, but more importantly demonstrate that the company is on track to significantly improve performance over time. 

“The Australian wagering market is healthy, we’re confident it will return to growth and Tabcorp’s position in it will be much stronger when it does,” he concluded.  

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