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Tabcorp has reported a 6.1% decline in revenue for the three-month period between 1 July 2023 and 30 September 2023.

The figures were published as part of a trading update released today (12 October) and cover the operator’s Q1 2024 financial quarter.

The announcement was authorised for release by the Tabcorp board, which said the figures should be contextualised against the backdrop of a “softer” macro-economic environment.

Wagering and media revenue fell by 5.4% following a 0.9% decline in wagering turnover, reflecting the adverse impact of lower fixed odds yields due to sporting results.

There was modest 1% growth in digital wagering turnover during the period, but that was not enough to offset a 3.9% drop in digital wagering revenue.

The operator has released 13 updates to its TAB mobile app since it launched last spring.

Elsewhere, gaming services revenue slumped by 12.7%, which the operator attributed to the A$62m sale of its eBet loyalty systems business, which completed in February 2023. A lower number of contracted electronic gaming machines (EGMs) was cited as another reason for the decline.

Tabcorp MD and CEO Adam Rytenskild said: “Given the softer trading environment, I’m pleased we grew digital wagering turnover, which highlights that customers are responding to our new digital customer offering.

“We continue to be relentless in the way we execute our TAB25 strategy and remain focused on making the right decisions for the long-term success of the business.”

Trading conditions are expected to improve the ASX-listed wagering giant as the Spring Carnival approaches, with the new NBA season also set to begin.

“We’re in the midst of implementing significant change as a company and industry,” said Rytenskild.

“Our strategy is on track as level playing field and licence reforms commence, our customer reputation grows, and cost base reduces,” he added.

Tabcorp has set a target to achieve a 30% share of Australia’s online betting market as part of its TAB25 strategy, alongside cost savings of between A$80m and A$100m.

Tabcorp’s share price fell by 6% following the trading update.

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