Tabcorp wagering revenue falls, shares plunge 10pc
Wagering giant Tabcorp has followed global rival Entain in warning investors about soft trading conditions, reporting that revenue fell across its divisions just three months into the new financial year.
Shares in the ASX-listed operator fell 10.3 per cent to 87.5¢ on Thursday when it took the unusual step of providing the market with first-quarter 2024 revenue performance, which it said was an attempt to provide clarity on broad market conditions.
Tabcorp chief executive Adam Rytenskild is confident the business strategy will deliver growth despite weaker economic conditions. Rhett Wyman
Tabcorp said revenue declined 6.1 per cent in the first quarter, attributed to weakness in wagering and media, digital wagering and gaming services. Wagering turnover has fallen slightly, down 0.9 per cent.
Chief executive Adam Rytenskild said the business had grown digital wagering turnover, which was a positive sign given the softer market conditions.
“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,” he said.
Tabcorp, which typically releases revenue only twice a year, said it was compelled to keep the market informed given the macroeconomic environment and the performance of its rivals.
Mr Rytenskild did not provide any earnings guidance in August when the company reported its results for the last financial year, instead focusing on predicted costs in the new financial year, as he waits to learn whether the group has retained the Victorian wagering licence.
The process for the Victorian wagering licence, which could end up split between multiple providers, is continuing, and the impact of potentially losing it remains
Read more on afr.com
