Tabcorp reports double-digit decline in EBITDA for full-year 2024
Australian operator sees drop in revenue and total market share alongside failure to reach TAB25 target as incoming CEO insists “building blocks” for the business to succeed are there
Tabcorp has reported a 3.9% decrease in revenue for full-year 2024 (FY24) alongside a drop in total revenue market share as bosses cited “soft wagering market conditions”.
Revenue stood at A$2.3bn (£1.2bn), down from A$2.4bn in FY24, which was pegged against the weaker trading conditions as well as the sale of the MPS business in October 2023.
Group EBITDA fell 18.7% to A$317.7m, with group EBIT dropping significantly by 35.3% to A$97.4m – down from A$150.5m
The firm’s wagering and media division saw revenue drop 3% to A$2.2bn, with EBITDA falling 18.4% YoY to A$251.2m.
EBIT for the division slumped 39.5% from A$116.2m to A$70.3m.
Total wagering revenue for the wagering and media division dropped 2.7% YoY to A$2bn due to a soft trading environment.
Digital wagering revenue also fell 2.2% to A$922m “reflecting a 4.9% decline in turnover partly offset by higher digital gross yields”.
A further 14.8% YoY decrease in international wagering revenue to A$212.3m was due to “increased competition in (ex-Australia) pooling markets”, while media revenue dropped 6.2% YoY to A$206.7m.
Revenue from the group’s gaming revenue declined 13.5% from A$203.6m to A$176.1m while EBITDA for the arm slumped 20% to A$66.5m.
For the second half of FY24, Tabcorp’s total revenue market share stood at 32.1%, down from 32.9% in H2 2023 and a larger drop still from H1 2024 when the metric stood at 33.7%.
There was growth in the firm’s digital turnover market share, rising from 20.1% to in H2 2023 to 20.7% in H2 2024, albeit a decline once again from H1’s 21.2% share.
There was also a fall in digital revenue market share from H2 2023’s 23.9% to 22.9% in H2 2024.
The market share declines came as Tabcorp confirmed a slight slip in active users during the reporting period from 805,000 to 798,000.
Tabcorp did note that “revenue share trends in this limited dataset were not reflective of the broader market in this period, as evidenced by the index results”.
Elsewhere, the business confirmed non-cash impairment charges totaling A$1.4bn post-tax, which are related to the “slower than expected” recovery of the Australian market and a tightening of the regulatory environment.
Due to these results, Tabcorp said its TAB25 targets are unlikely to be met, with the operator previously setting an Opex target of A$640m to A$660m.
Incoming CEO Gillon McLachlan said: “It is clear the business will not meet its TAB25 targets. It is my job to unlock an enhanced cadence with a focus on people and capability. As we evolve, we’ll be better placed to continue executing on the growth opportunities.
“The building blocks are there to create the complete sports entertainment business. To achieve this, there will be a new cadence at Tabcorp which will ultimately unlock significant value for shareholders.”
Tabcorp’s stock was down 15% to A$0.48 at the time of writing (the morning of 28 August).