Tabcorp notes H1 revenue and EBITDA slip despite market share gains
Australian operator remains confident in 2025 targets as management points to trading conditions for slip in KPIs
The post Tabcorp notes H1 revenue and EBITDA slip despite market share gains first appeared on EGR Intel.
Tabcorp has insisted the group is on track for its 2025 targets despite reporting a 5% year-on-year (YoY) dip in H1 revenue for fiscal year 2024.
During the six months to 31 December 2023, the ASX-listed firm secured group revenue of A$1.2bn (£623.3m), down from A$1.3bn in H1 2023.
Tabcorp said the decrease was primarily due to “current trading conditions”.
The group’s wagering and media arm accounted for the lion’s share of H1 revenue at A$1.1bn, although the division did see a 4.2% YoY drop in revenue.
Additionally, EBITDA for the arm during the reporting period dropped by 13.2% to A$134m.
However, despite the declines in revenue and EBITDA, Tabcorp reported an increase in total revenue market share from 32.9% to 33.7%.
Digital turnover market share also increased, jumping from 20.1% to 21.2%, while digital revenue market share shifted from 23.9% to 24.4%.
Those market share figures come despite a fall in active digital users by 1.4% YoY to 786,000.
The dip in actives was met with a decrease in turnover of 3.8% to A$7.5bn, with a 5.9% dip in horseracing turnover abated by a 6.7% rise in sports.
Tabcorp also confirmed a non-cash impairment charge of A$731.9m after tax relating to certain assets in New South Wales and South Australia, as well as goodwill relating to the wagering and media arm.
The group’s gaming services segment saw revenue slip 14.5% to A$93m and EBITDA down 17% due to the sale of the MAX Performance Solutions and eBet businesses.
Elsewhere, group EBITDA was down 14% to A$170m while EBIT slipped 32% to land at A$50m.
Despite the downturns in H1, management insisted the Australian market is “historically resilient” and pointed to a 6% CAGR for the sector.
Adam Rytenskild, Tabcorp MD and CEO, said: “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 added.
The operator also detailed a brief January update in which it said the business was continuing to “compete strongly in the Australian wagering market”.
However, group revenue is down 3.9% compared to January 2023, while wagering turnover has slipped 5.4%.
The post Tabcorp notes H1 revenue and EBITDA slip despite market share gains first appeared on EGR Intel.
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