Australian betting operator Tabcorp generated revenue of $2,338.9m, down 3.9 per cent, resulting in a net loss of US$925m for the year to June 30 2024, with higher inflation and interest rates softening customet spending.
Betting turnover and net revenue performed well relative to major competitors in a soft market, driven by improved digital competitiveness and a unique omni-channel offer. Digital betting revenue was down 2.2 per cent in FY24 and flat in 2H24. Cash betting revenue was up 0.4 per cent in FY24 and up 5.3 per cent in 2H24, outperforming the digital market.
Tabcorp led the market for new product releases with 20 TAB App releases launched since
September 2022, which has improved Tabcorp’s competitiveness. The new 20-year Victorian Wagering and Betting Licence was awarded in December 2023 and successfully transitioned to in August 2024. There is also now a level playing field operating in Victoria, Queensland, the ACT and Tasmania. Tabcorp upgraded 31 venues across Queensland, Victoria and NSW resulting in average turnover being 19 per cent higher than in the non-refurbished venues.
MD & CEO-Elect Gillon McLachlansaid: “Tabcorp has a unique asset base which can ultimately create a complete sports entertainment experience for our customers and unlock value for shareholders. The challenge of connecting those assets to continue executing on the opportunities they present is what I find appealing about the opportunity for the company going forward.
“The company has done a good job at building solid foundations since demerger and there is no doubt TAB is competing better in the market. The product is better, speed to market has improved, the retail offering is being revitalised and we’re achieving structural reforms that will make the company more competitive. The foundations to unlock value have been built.”
But the reality is the company is only part way through a turnaround, and we need to continue
to enhance execution to create greater value. 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.
“Today’s results demonstrate a competitive performance in the soft market conditions we face. It shows customers are responding to the improved product offering and there’s no doubt the business is more competitive today than it was at demerger, but it’s not where it ultimately needs to be. It will require change but the goal remains unchanged.
“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. Importantly, I want to stress that customer safety is personally very important to me. The
evolution of technology and our processes to identify problem gamblers faster will not be
compromised as we unlock additional value within the company.”
