Aussie Tabcorp’s fiscal year 2023/2024 (FY24) was marked by significant milestones, challenges, and strategic advancements as the company navigated through a complex economic and regulatory landscape.
A pivotal achievement for Tabcorp during FY24 was securing the new exclusive 20-year Wagering and Betting Licence in the state of Victoria.
This milestone positions Tabcorp on equal footing with competitors, enhancing its ability to deliver innovative entertainment experiences to Victorian customers.
Digital transformation remained a cornerstone of Tabcorp’s growth strategy, with TAB demonstrating increased agility and innovation in product development.
Despite challenges–including inflationary pressures and higher interest rates–, Tabcorp accelerated its digital product releases, closing market gaps and enhancing customer satisfaction.
The Gaming Services business successfully transitioned into a high-quality integrity services entity, aligning with regulatory reforms and strengthening Tabcorp’s leadership in community wagering debates.
Financial Overview
Tabcorp reported total revenue of just under AUS$2.34 billion (£1.2bn) for FY24, a decline of 3.9 percent, due, primarily, to subdued wagering market conditions and the divestment of eBET and MAX Performance Solutions businesses.
EBITDA–before significant items–stood at AUS$317.7 million (£163.38m), down 18.7 percent from the previous year, highlighting the impact of economic and regulatory challenges.
The company reported a net loss after tax of AUS$1.359 billion for FY24 (£699m), driven by non-cash impairment charges related to the Wagering and Media business and other significant items.
The Board announced an unfranked final dividend of 0.3 cents per share (cps), totalling 1.3 cps for the year, reflecting a payout ratio of 93 percent of net profit after tax before significant items and equity accounted loss.
Market Dynamics
Despite a softer wagering market, Tabcorp’s digital business performed favourably relative to major competitors in terms of wagering turnover and net revenue.
The retail segment also showed resilience, with cash wagering outperforming digital, underscoring customer responsiveness to new offerings and venue upgrades across key markets.
Initiatives
Tabcorp remains focused on enhancing digital competitiveness, leveraging its revamped retail footprint and driving growth through strategic investments and operational efficiencies.
The company continues to engage proactively with regulatory bodies, including ongoing collaborations with the New South Wales Government to modernise wagering tax regimes and industry funding.
The appointment of Gillon McLachlan as Tabcorp’s new MD & CEO, effective August 2024, underscores Tabcorp’s commitment to leadership continuity and industry expertise.