Following Stellar Results, Tabcorp Aims for Higher Digital Market Share

This was revealed by Tabcorp in connection with the announcement of the company’s half-year results for the 6 months ending on December 31, 2022.

Despite Strong Competition Tabcorp Held Its Digital Market Share

The company reported a 1H2023 group statutory net profit after tax (NPAT) of AUD 52 million ($35.8 million), up 11% from the previous year. Group revenue was AUD 1,275 million ($876.6 million), a 58% growth from the previous year’s COVID-impacted first half. The company’s total wagering revenue market share increased from 31.2% in the previous year’s comparable period to 34.8%, and its digital revenue market share was 25.1%, with Tabcorp holding digital share for the first time since 2019.

Tabcorp CEO Adam Rytenskild commented that the results showed the company’s transformation strategy is working. Rytenskild was pleased that Tabcorp held its digital revenue market share despite new entrants into the market and the reopening of retail venues.

Rytenskild further elaborated on Tabcorp’s ambitious plans for the future:

I’m excited to announce that we are targeting 30% digital revenue market share by FY25. We’ll do this with a transformation of our entire wagering ecosystem, including new products for punters, a reinvigoration of Sky Racing that will include a greater integration with TAB and the implementation of our new marketing strategy.

Adam Rytenskild, CEO, Tabcorp

The company will also fast-track its Genesis transformation program to reduce operating costs by FY25.

Tabcorp CEO Highlights the Successful Demerger from The Lottery Corporation

Rytenskild further stated that the company’s demerger from The Lottery Corporation has been seamless, and the separation remains on track. The company’s gaming services business continues to pivot to an integrity services model, which was highlighted by the sale of eBet, the exclusive license to monitor all electronic gaming machines (EGMs) in Tasmanian pubs and clubs, and an agreement with the Star Entertainment Group to enhance technology and enable central monitoring of EGMs at their Sydney casino.

Tabcorp successfully launched a new TAB App, purchased a 20% stake in Dabble, and showed capital discipline in the WA TAB sale process. The company also raised AUD 425 million ($292 million) equivalent in debt from the US Private Placement market.

With the successful implementation of a level playing field in Queensland, Tasmania, and the ACT, the company now seeks to have the same in every state and territory. Tabcorp’s transformation program shows the strategic direction is the right one, and its rapid transformation is delivering on actionable priorities for FY23.