Tabcorp homes in on digital wagering after buoyant results

World News

Tabcorp hopes to claim 30 per cent of the digital wagering market by the end of 2025, following better-than-expected results for the latest half despite increased competition from new entrants.

Tabcorp posted $52 million in net profits for the six months to December 31, beating market expectations of $40 million. Revenue increased by 11 per cent to $1.2 billion while its earnings before interest, tax, depreciation and amortisation rose 24 per cent to $197 million.

The result was buoyed by a 58 per cent jump in cash wagering revenue following the end of COVID-19 restrictions.

Tabcorp chief executive Adam Rytenskild.Credit:Rhett Wyman

Tabcorp’s chief executive officer Adam Rytenskild said the results showed the business had rebounded from the pandemic, and its transformation strategy, underpinned by a new app, has worked.

“I’m particularly pleased that, with new entrants entering the market and retail venues reopening, Tab held digital revenue market share for the first time since 2019,” Rytenskild said.

The group announced a fully franked interim dividend of 1.3 cents per share, which will be paid on March 21.

Gambling entrepreneur Matthew Tripp launched his new wagering group Betr during the Spring racing season last year by offering 100-1 odds for bets up to $10 on any horses racing in the Melbourne Cup, causing hundreds of thousands to flock to the new entrant. Betr recently put in an undisclosed offer to takeover the Australian business of another Tabcorp rival, PointsBet. 

Tabcorp benefited from Queensland, Tasmania and the ACT increasing the point of consumption tax on its competitors last year to create what the wagering giant deems a “level playing field” with its corporate bookmaking competitors.

Tabcorp announced it will seek to reduce its operating costs by $20 million to $60 million over the next three years, in line with its transformation plan launched after its 2022 demerger with former cash-cow The Lottery Corporation.

It also cut its expected spending for the 2023 fiscal year to between 2 per cent and 3 per cent growth, down from 3 per cent to 4 per cent previously.

Tabcorp recorded a statutory net profit of $6.7 billion in 2022 following its demerger with The Lottery Corporation, up from $269.4 million in the 2021 financial year.

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