Tabcorp Announces Financial Outcomes for Fiscal Year 2023

Tabcorp has disclosed its financial results for the fiscal year ending June 30, 2023 (FY23), marking the first complete fiscal year since the company’s demerger on June 1, 2022. The financial outcomes for FY23 encompass Tabcorp Group’s two primary sectors: Wagering and Media, and Gaming Services, providing a comparative analysis to the prior fiscal year (FY22).

The Group reported an increase in revenues, totalling AUS$2,434.4 million (£1,264.2 million/US$1,601.5 million/€1,476.7 million) for FY23, up by 2.6% from the previous year. A notable highlight includes a statutory net profit after tax (NPAT) of $66.5 million, despite facing a non-cash impairment charge of $49.0 million related to the Gaming Services business and other significant items totalling a $16.4 million benefit before tax.

This performance marks a substantial improvement from the prior year’s net loss of $118.4 million. The Group’s EBITDA before significant items reached $391.0 million, slightly up from $381.6 million in FY22.

Tabcorp’s strategic focus for FY23 has been on laying the groundwork for transformation into a more competitive and growing business by FY25, aligning with the TAB25 strategy. This included the launch of the new TAB App, 10 new product releases, and efforts to level the playing field in terms of wagering taxes and fees across various jurisdictions.

Gaming Services progressed towards an integrity services model, highlighted by securing a new 20-year licence for electronic gaming machine monitoring in Tasmania, starting July 1, 2023, and completing the sale of the eBET business. Post FY23, Tabcorp announced the sale of MAX Performance Solutions.

The report also outlines the Genesis program’s success in enhancing organizational efficiency and managing costs, with FY23’s net operating expenses remaining consistent with FY22. Tabcorp’s commitment to cost performance is expected to support investment in the business in FY24, including repositioning the TAB brand and enhancing data and analytics capabilities.

Capital expenditure for FY23 was reported at $155.4 million, with the Group’s statutory results before significant items showing a positive trend across revenues, EBITDA, and EPS.

This financial year represents a pivotal period for Tabcorp, demonstrating progress in strategic initiatives and setting a foundation for future growth and competitiveness in the igaming and wagering sectors.

“The 2022/2023 financial year (FY23) represents the first full year of operation of our businesses following the demerger of the Lotteries and Keno business in June 2022 (Demerger).

“We’re pleased to report that in our first full year following the Demerger we achieved what we pledged to investors we would do and have laid the foundations for growth. TAB launched a new App on time as promised to the market with a record 805,000 active customers in FY23, a level playing field was legislated in Queensland and our Gaming Services business continued its transition to an integrity services model.

“We also launched our TAB25 vision to reshape our Company into a simpler, growing, more valuable business, providing investors with clarity around our strategic goals for the next three years.

“The Group reported a net profit after tax (NPAT) of $66.5m in FY23, after incurring a non-cash impairment charge of $49.0m (before tax) relating to the Gaming Services business and other significant items benefit totalling $16.4m (before tax)(i). Revenues were $2,434.4m, up 2.6% on the previous year. Group EBITDA before significant items(i) was $391.0m(ii), up from $381.6m for the previous year”, quote attributed to both Chairman Bruce Akhurst and Adam Rytenskild Managing Director and Chief Executive Officer in Tabcorp’s financial report.