Tabcorp reports 2.6% uptick in revenue for fiscal year 2023
EBITDA and EBIT jump for Australian operator as CFO confirms exit after more than a decade with the company
Tabcorp has reported a slight 2.6% increase in revenue for full-year 2023 (FY23) as the Australian firm lays the groundwork for its TAB25 strategy.
The operator recorded FY23 revenue of A$2.43bn (£1.24bn), increasing from the A$2.37bn recorded in FY22.
Tabcorp’s financial year runs from 1 July 2022 to 30 June 2023.
The group’s wagering and media division saw revenue rise 2.2% to A$2.2bn, with EBITDA rising 7.3% on a pro forma basis to A$308m.
The increase was attributed to the fact that the firm was no longer affected by Covid-19 restrictions. Tabcorp said the arm’s performance was partially offset by a decline in the online wagering market, as well as increased generosity costs and investments in the new TAB app and digital products.
Moving across to the firm’s gaming services division, which saw a 3% year-on-year (YoY) revenue increase to A$203.6m, with EBITDA increasing 13% YoY to A$83.1m.
This increase was attributed to continued recovery from the pandemic and the 20-year renewal across Tasmania.
Total group EBITDA also increased 8% YoY to A$391m with EBIT soaring 103% to A$150m, both on a pro forma basis.
Tabcorp also reported it had increased it total market share from 33.6% to 34.6%, while it noted a slight downturn in its digital-only market share from 24.9% to 24.5%.
Due to these results, Tabcorp reiterated its confidence in its TAB25 vision, which was detailed as part of its H1 2023 results.
Adam Rytenskild, MD and CEO of Tabcorp, said that he was confident in this strategy for the operator and that it would pay off despite the weakened digital performance, stating that the firm increased its overall market share over the last year.
He said: “The digital market has declined from its Covid-19 highs. The question of how Tabcorp would come out of Covid-19 was always going to be about whether we’d lose market share; instead, we grew the total share. We’ve disrupted the market.”
Rytenskild took aim at the new disruptor in the Australian market, Betr, in his results statement as he referenced the new operator as “aggressive”. Rytenskild commented: “Despite a distorted market, which included the introduction of an aggressive new operator and increased generosity and marketing spend by competitors, our digital revenue share remained relatively stable, highlighting the strength of our new products.”
Going forward, Tabcorp said that strong cost performance will help provide the business with flexibility for continued investments through the next year, with the firm anticipating to put aside money for a TAB brand reinvention and ongoing investment in data and analytics capacity.
Rytenskild added: “We remain on track to deliver our TAB25 Opex target – this is a significant achievement given inflationary pressures and the investments we’re making. We’re making good progress on establishing a new operating model to enable more agile and contemporary ways of working.
“We want to thank shareholders for their continuing support. We’re one year into our TAB25 transformation journey and have created a strong foundation to transform Tabcorp into a stronger, more competitive and growing business by FY25,” Rytenskild concluded.
Elsewhere, Tabcorp announced chief financial officer Dan Renshaw would depart the company at the end of August due to personal reasons.
Renshaw originally joined the firm in December 2012 as a GM for investor relations before a series of promotions saw him named CFO in June 2022.
He will be replaced in the interim by former Tabcorp CFO Damien Johnston, who left the operator in November 2019.
ASX-listed Tabcorp’s share price climbed 4.29% to close out the day at A$1.10.