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Back to Black, Tabcorp Tames Killer Covid

Australia’s largest gambling company, Tabcorp Holdings, is back in the black after riding out the killer Covid wave that’s hammered the country’s economy.

The Omni-channel, which employs 5,000 people, has just posted its 2020/2021 full-year results, ending June 30, marking group profits of AU$269 million (£141m/US$194m/€165m) — after the previous year’s fiscal loss of AU$870 million (£456m/US$623m/€533m).

They are nothing short of a joy to read – and vindication of a bold corporate strategy that will see Tabcorp’s Lottery and Wagering verticals reborn as independent units from next year.

The Melbourne-headquartered Australian Securities Exchange-listed giant has registered impressive growth in all sectors.

Group revenues were up to AU$5.6 billion (£2.9bn/US$4bn/€3.4bn), from AU$5.2 billion (£2.7bn/US$3.7bn/€3.2bn), while EBITDA climbed to AUS $1.1 billion (£576m/US$787m/€673m), over last year’s AU$995 million (£521m/US$713m/€609m).

Lotteries and Keno revenue, alone, was up nearly 10 per cent to AU$3.2 billion (£1.7bn/US$2.3bn/€2bn), with EBITDA growing 14 per cent to AU$620 million (£323m/US$444m/€378m).

Tabcorp’s Gaming Services vertical, which supplies gaming machines to real-world Australian casinos and hospitality venues, couldn’t shake off the pandemic lockdown drag, however.

Its revenues plunged 17 per cent to AU$183 million (£96m/US$131m/€112m), while its EBITDA recorded a steep 16 per cent decline to AU$70 million (£37m/US$50m/€43m).

Meantime, Tabcorp has set a June 2022 deadline to hive off its Lottery and Keno verticals.

“The rationale for the demerger is compelling and represents the next phase in the new journey of Tabcorp,” said Tabcorp CEO David Attenborough.

“We are working to ensure that the standalone businesses are set up for success into the future.”