Tabcorp revenue rises 10% as bosses lay out “strategic evolution”

Tabcorp has posted a 10.1% year-on-year (YoY) rise in group revenue, with the Australian operator’s topline figure sitting at A$1.3bn (£657.2m) for the first half of the 2025 financial year.

Group EBITDA followed a similar trajectory to revenue, climbing 12% YoY to sit at A$190.2m, up from A$169.8m, for the ASX-listed business.

The increase of A$36.4m from H1 2024 was in line with company expectations due to “softer trading conditions”. 

Group EBIT was posted at A$92.7m, an increase of 85.4% YoY, for the six months ending 31 December 2024.

Tabcorp’s wagering and media division recorded a revenue rise of 11.3% YoY, to a total of A$1.2bn.

Bosses noted that the impact of Tabcorp’s new 20-year wagering and betting licence with the Victorian Gambling and Casino Control Commission (VGCCC) provided a significant uplift to revenue. 

EBITDA for the division rose 16.9% YoY to A$156.7m, while EBIT more than doubled when compared to H1 2024, sitting at A$79.4m. 

Total wagering revenue for Tabcorp’s wagering and media division climbed 14.1% to A$1.1bn, aided largely by the assumption of 100% Victorian revenue following the shuttering of a previous joint venture in the state.

However, wagering turnover was down 4.3% YoY, with management pointing once again to a “continued soft trading environment”.

Domestic digital turnover slumped 8%, with a 5.3% decline alone in racing turnover. Sports betting turnover was flat with a 0.3% uptick.

Digital wagering revenue amounted to A$539.6m, marking a 14% increase compared to the A$473.4m generated in the corresponding period in 2023.

Despite the online growth, Tabcorp noted that revenue from retail operations jumped 18%, showing stronger growth, albeit to a smaller revenue total of A$497.1m.

There was a marginal fall in international revenue, dropping 1.1% YoY to A$108m, while domestic revenue leapt 16% to A$1bn. 

The operator recorded a slight rise in active users during the reporting period, increasing 1.9% to 801,000. 

Unlike previous financial updates, Tabcorp did not disclose its estimated market share across Australia.

The media branch saw a more modest revenue rise of 1.6% YoY to A$192.1m.

Tabcorp’s integrity services produced A$88.1m and A$33.5m in revenue and EBITDA, respectively, a total that was impacted by the sale of its MPS business in October 2023. 

The release of the H1 2025 results also saw Tabcorp detail its cost savings plans, including ramping up operating expenditure savings to A$30m in the full year, as opposed to a previous target of A$20m.

The operator said it had cut around 200 roles in November as part of the measures, with plans to review marketing spend and procurement optimisation.

In fact, generosity spend was cut by 12% in the first six months of the fiscal year, which Tabcorp said was a benefit to its net revenue.

Within the first half of its 2025 financial year, Tabcorp made changes to its leadership team, including a new chief wagering officer in Michael Fitzsimons, who was appointed in January.

Former Paramount Australia and New Zealand executive Jarrod Villani was handed the reins as Tabcorp’s chief commercial and media officer, while ex-chief customer officer Jenni Barnett departed in December. 

Tabcorp CEO and managing director Gillon McLachlan described the improved results as the operator “getting fitter” in his comments attached to the results report.

He said: “We have increased our wagering and media capability at the leadership level, developed a simpler, more cost effective operating model and are operating with a bias for action and increased accountability.  

“As we improve execution we will transition to an evolved strategy, with a broader focus on unlocking the value which lies within our unique set of assets.  

“We are digitally competitive, and our second half will be about operational growth through our omnichannel offering. We will build on our digital progress to enable a broader set of strategic initiatives that will allow us to take advantage of our unique asset base.” 

McLachlan concluded with an upbeat assessment of what’s to come for Tabcorp, adding: “Today’s pleasing results demonstrates a company executing better. The outcomes of an improved cadence and a culture of accountability.  

“We have taken significant action over the last six months to improve our cost and capital discipline, which you can see today.   

“When I joined Tabcorp I said I was drawn to the value that can be unlocked within our unique set of strategic assets.

“Unlocking that value and taking a broader strategic focus will be the key to growing value for shareholders in the years ahead.” 

Tabcorp’s share price is up almost 4% at the time of writing.