Australian racing and wagering company Tabcorp has released its annual financial report for the year leading up to 30th June, 2023 (FY23) revealing a 2.4% increase in revenues.
According to the FY23 report, revenue from continuing operations came to AU$2.4 billion ($1.5 billion/€1.42 billion) with the majority of company revenue coming through its wagering and media division.
The company reported a net profit after tax of AU$67 million ($42.7 million/€39.9 million). While this was significantly less than the previous year, Tabcorp noted that FY22 profit was a direct result of the demerger of the company’s lotteries and keno business. These are now listed on the ASX as The Lottery Corporation.
In the Wagering and Media segment, revenues grew by 2.2% to AU$2.23 billion ($1.43 billion/€1.32 billion) while EBITDA for the segment grew by 7.3% to AU$308 million ($198 million/€183.3 million). Tabcorp attributed this growth to an increase of 3% in active account customers to a record 805,000 in FY23.
Tabcorp FY23 highlights
- Group Revenue of AU$2.4 billion – up 2% on FY22
- Group EBITDA of AU$391 million – up 8% on FY22
- Group EBIT of AU$150 million – up 103% on FY22
- Group operating expenses (opex) of AU$618 million – down 1% on FY22
- Record digital active TAB customers of 805,000 – an increase of 3% year-on-year
- Total TAB Revenue Market Share of 34.6% versus 33.6% in FY22
- Digital Revenue Market Share of 24.5%3 versus 24.9% in FY22
The report also reveals Queensland is the best performing TAB state after the implementation of a Level Playing Field on 1st December 2022.
Tabcorp Managing Director and CEO Adam Rytenskild said:
“After the first year of our three-year transformation, we have increased total revenue market share and seen a stabilization in our digital market share. We delivered increased digital turnover share and racing revenue market share, while 4Q23 sport yields relative to competitors negatively impacted our sport and total digital revenue market share.
This is a pleasing result given the impacts in FY23 from new entrants, highly competitive generosity levels, and smaller scale operators targeting near term profitability.
Today’s earnings and record active customers highlight the successful completion of the foundation year in the TAB25 transformation strategy.”
Global gambling statistics list Australia as the fifth largest gambling market in the world in terms of revenue with AU$16.9 billion ($10.9 billion/€10.1 billion) reported in 2022. This means that Tabcorp’s latest report shows that the company generates roughly 14% of all gambling revenue in Australia.
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.
