Tabcorp posts $66.5m profit after demerger, says market share rising
Tabcorp has posted a $66.5 million net profit after tax in its first year after the demerger of its lotteries and Keno business, as a growing wagering business offset softer market conditions.
The company, which operates media and gaming services, increased statutory revenue by 2.6 per cent to $2.4 billion and earnings before interest, tax, depreciation and amortisation climbed 88 per cent to $407.4 million.
“Our total revenue market share grew, highlighting the strength of our wagering ecosystem”: Tabcorp boss Adam Rytenskild. Rhett Wyman
Tabcorp has faced increasing competition from major international bookmakers such as Entain and Sportsbet as customers abandon in-person wagering and instead place bets online.
Tabcorp this year launched a new mobile platform, and on Thursday said it had grown its total revenue share from 33.6 per cent to 34.6 per cent. The number of active digital customers rose 3 per cent over the 12 months to June 30, it told shareholders.
On a pro forma basis, Tabcorp reported a 2 per cent increase in group revenue to $2.4 billion. EBITDA climbed 8 per cent to $391 million when taking out the earnings from the lotteries segment last year.
Net profit after tax was $66.5 million, impacted by a $49 million non-cash impairment of $49 million related to the gaming services business.
Tabcorp chief executive Adam Rytenskild said the company was the only large local wagering operator to increase revenue and EBITDA in the most recent financial year. He said his cost-cutting program, known as “Genesis”, had delivered a 1 per cent decrease in operating expenditure for the year.
“Our total revenue market share grew, highlighting the strength of our wagering ecosystem,” Mr Rytenskild said. “Despite a distorted
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