Australian bookmaker Tabcorp Holdings Limited has released a trading update for H1 2024 (July 1st – Dec 31st) reporting a Group Statutory Net Loss after tax of AU$636.8 million ($411.65 million/€385.7 million).
The net loss included a non-cash impairment charge of $731.9 million ($480 million/€443.25 million) after tax and other significant items benefit totaling AU$77.5 million ($50.8 million/€46.9 million) after tax.
Tabcorp H1 2024 Highlights
- Group Revenue of AU$1.2 billion ($787 million/€726.8 million), down 5% on 1H23
- Increased Variable Contribution (VC) margin of 40.1%, up from 39.2% in 1H23
- Group EBITDA of AU$170 million ($111.4 million/€102.9 million), down 14%
- Group EBIT of AU$50 million ($32.8 million/€30.3 million), down 32%
- Non-cash impairment charge of AU$731.9 million ($480.1 million/€443.3 million) after tax to the Wagering and Media business.
- Awarded new exclusive Victorian Wagering and Betting Licence.
Tabcorp Managing Director & Chief Executive Officer, Adam Rytenskild said:
“TAB’s improving market share trend highlights this, and the broader operational result demonstrates the substantial progress we have made as a company. We continue to focus on the three pillars of our strategy. Invest in customer and
competitiveness to Win back the Australian market, Level the Playing Field for fees, taxes and
regulation and reshape our cost base for efficiency and growth.Total market share and digital market share grew compared to the prior half. This is another positive step having stopped the decline. We are seeing positive signs from targeted investment in product, brand, data, technology and retail as we start to leverage the strength of an extensive integrated wagering and media network throughout the country.
We have become a more digital business, underpinned by recent investments in AI, data and new technology platforms. Combined with our TAB brand embedded in over 4,000 venues, we see a significant omni-channel opportunity that we are yet to capitalise on.”
On the subject of the new license he added:
“The new Victorian Licence is a game changer for TAB and will generate an immediate step change in earnings in Victoria from August. Had the licence been in place during FY23 EBITDA would have been $140m higher on a pro forma basis.
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.”
Tabcorp Facing Fines
In Q1 of 2024 Tabcorp was fined AU$15,000 ($9,538/€9,061) for offering an inducement to gamble to people without a TAB betting account. Then, in September, the Victorian Gambling and Casino Control Commission (VGCCC) announced that Tabcorp faces 54 charges, 27 of which relate to minors accessing a gambling machine area and play pokies. If found guilty, the company could face a maximum fine of AU$698,997 ($451,383/€422,100).
The September charges have yet to be brought to a conclusion.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.