Tabcorp Makes Up Ground in H1
Australian operator Tabcorp has reported AUS$2.87bn (£1.06bn/€1.85bn/US$2.23bn) total revenue for the six months to 31 December 2020, which is a 1.5% year-on-year decline.
Despite the marginal fall in revenue for the half-year, Tabcorp spun a positive light on the results revealing a 2% increase in its lottery and keno division to AUS$1.61bn and a 1% rise in its TAB wagering unit recording to AUS $1.19bn.
The slight improvement in conditions over the first half of the financial year meant that net profits after tax were AUS$207m, down 3% on AUS $214m in 2019/20.
However, the interim results also revealed that Tabcorp’s gaming services unit saw a 53% fall in revenues to AUS$66m from AUS$150m, which was put down to the hotel and club venue closures across Australia over the course of the pandemic.
The firm reported a 6.2% decline in EBITDA from AUS $597m to AUS560m. However, the operator said it was still aiming to secure group-wide EBITDA savings of AUS$95m by the end of year trading.
Meanwhile, given the performance of TAB units during lockdown, the firm will focus on improving its omnichannel offering and platform infrastructure.
Outgoing Tabcorp Group CEO David Attenborough characterised the results as “a strong recovery following the recent market challenges”.
He said: “The COVID-19 pandemic continued to impact Tabcorp’s group earnings in 1H21, with the retail closures and restrictions, especially in Victoria, having a material impact.
“However, we are pleased with the way our teams and partners responded to the substantial operational challenges the pandemic presented. COVID-19 has clearly demonstrated the importance of serving customers with a seamless, multi-channel experience. Investments made to modernize our digital offering in recent years drove significant benefits.”
The firm announced that the search for a new CEO was underway last June. Attenborough, who is due to step down this year, has been managing director and CEO since 2011. He oversaw the firm’s AUS$11bn merger with lottery provider Tatts in December 2017.