Tabcorp Marks Revenue Growth Amid Challenging Australian Market
LISTEN TO THIS ARTICLE:Tabcorp reported an annual revenue increase to AU$2.43bn (£1.24bn/€1.45bn/US$1.58bn) in the fiscal year 2023.
Despite facing a “distorted” Australian market and new competitors, the company was able to grow its overall revenue market share, while its digital share remained stable.
The operator noted increased marketing spend by competitors, including an “aggressive" new operator. Nevertheless, Tabcorp increased or maintained market share across key areas in 2023, with a record 805,000 active TAB customers. This aligns with the company’s TAB25 strategy to achieve a 30% digital revenue market share by the 2025 financial year.
We’ve built this foundation for growth by creating the right products, policy settings and attracting the people needed to transform our business. Our total revenue market share grew, highlighting the strength of our wagering ecosystem.
Related: Tabcorp to Improve TAB’s Brand Exposure with Cowboys Deal.
Divisional Growth and Executive Changes
Tabcorp’s wagering and media division revenue was $2.23bn, up 2.2% pro forma, with wagering revenue edging up 1.9% to $1.76bn. Although digital revenue dropped 12.2% to $942.7m, cash wagering revenue rose by 25.1% to $818.4m.
In addition, the gaming services division’s revenue climbed 3.4% year-on-year to $203.6m, with integrity services revenue at $117.9m. Earnings before interest and tax (EBIT) were up 102.8% pro forma at $150.5m, but net profit after tax (NPAT) was down at $84.3m. EBITDA from continuing operations before significant items was $391.0m, 8.4% higher pro forma.
Rytenskild observed that, “The results show we have achieved the FY23 goal of laying the foundations to achieve our TAB25 targets. We’ve reshaped the business to bring customers market-leading offers and create a simpler, more valuable growth business for our shareholders.”
CFO Daniel Renshaw to Step Down
Along with the financial results, Tabcorp announced that CFO Daniel Renshaw will step down at the end of the month due to personal reasons. Damien Johnston will serve as interim CFO from 1 September.
I’m really proud to have been involved in the successful demerger and the creation of new Tabcorp. I’m confident I will leave the business in a strong position and look forward to seeing the growth phase of the company.
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