Australian bookmaker Tabcorp reported net profit of AU$71.1 million ($51 million) for the financial year ended June, up 43.6% year-on-year. Group revenue rose 0.8% to AU$2.64 billion ($1.9 billion), while underlying EBITDA climbed 10.3% to AU$431.7 million ($310 million).
The company attributed the improvement to cost discipline, the effect of Victoria's reformed betting licence, and the first phase of a new retail commercial model. Operating expenses fell 0.8%, lifting EBITDA margin by 140 basis points to 16.4%. 'We are halfway through the transformation, the plan is working, we are maintaining discipline on cost and capital, and the company is growing profit,' said CEO Gillon McLachlan.
The Wagering and Media division posted revenue growth of 0.7% to AU$2.45 billion ($1.76 billion), with segment EBITDA up 9.9% to AU$361.8 million ($260 million). Domestic turnover rose 0.9%: sports betting grew 8.3%, while racing totalisator wagering slipped 1.1%. Digital revenue in Australia edged up 0.3%, retail stakes gained 1.6%.
International wagering revenue dropped 3.7% to AU$223.7 million ($160.5 million) on weak trading in Hong Kong during the second half. Media revenue increased 1.9% to AU$377.8 million ($271 million), driven by content exports.
For the next financial year, Tabcorp expects domestic turnover growth at roughly the current rate, excluding any FIFA World Cup effect. Operating costs are forecast to rise 3–3.5%, with capital expenditure reaching as much as AU$160 million ($115 million).
