Tabcorp Announces Financial Performance for Fiscal Year 2023
Tabcorp has released its financial results for the year ending 30 June 2023. This marks the first full financial year post the Demerger, implemented on 1 June 2022. The year’s results account for Tabcorp’s two sectors: Wagering and Media, and Gaming Services. The outcomes are compared against the full year up to 30 June 2022.
For FY23, the company recorded revenues of AUS$2.43 bn (£1.24 bn/US$1.57 bn/€1.45 bn), representing a 2.6% increase from the previous year. A net profit after tax of AUS$66.5 million was reported, taking into account a non-cash impairment charge of AUS$49.0 million pertaining to the Gaming Services sector and other items amounting to AUS$16.4 million. This is a notable recovery from the AUS$118.4m net loss posted in FY22. Earnings before interest, taxes, depreciation, and amortization (EBITDA) was reported at AUS$391.0 million, up from AUS$381.6 million the previous year. Earnings per share (EPS) for FY23 stood at 2.9 cents, a positive shift from the 5.3 cent loss recorded for FY22.
Tabcorp’s strategic approach in FY23 included the launch of the new TAB app complemented by 10 product releases, enhancing its digital presence in the igaming industry. The company also made strides in establishing equitable wagering tax and fee structures, matching those of online igaming operators, notably in regions like Queensland, ACT, and Tasmania.
In other advancements, Gaming Services was awarded an exclusive 20-year license to monitor electronic gaming machines in Tasmania, starting 1 July 2023. Additionally, the eBET business was sold, and post FY23, the sale of MAX Performance Solutions was announced.
Operational efficiency was a focus in FY23, with net operating expenses consistent with FY22. The year saw gains from asset disposals and an insurance recovery. There’s an anticipation of brand investment in the first half of FY24, alongside continued data and analytics investments.
Tabcorp’s capital expenditure for FY23 was noted at AUS$155.4 million. The breakdown of the financial results shows revenues at AUS$2.43 bn for both FY23 and FY22. Taxes, levies, commissions, and fees were reduced by 8.2% from the prior year, and net operating expenses decreased by 0.5%. EBITDA increased by 88.3% from FY22, and a notable change in profit before tax, from a loss of AUS$136.2 million in FY22 to a profit of AUS$82.7 million in FY23.
“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,” from a message in Tabcorp’s report attributed to both CEO Adam Rytenskild and Chairman Bruce Akhurst.