Tabcorp Gains Market Share despite Dip in Revenue for 1H24

Tabcorp, the leading Australian betting giant, released its latest trading update, uncovering insights regarding its performance for the six months ended December 31, 2023. The period, recognized by the company as 1H24, indicated a decrease in revenue and group EBITDA, but highlighted an improving market share trend, pointing to expected strong growth in the near and long term.

The latest trading update reveals that the group revenue for 1H24 halted at AU$1,2 billion ($787 million). This result, compared to the corresponding period the prior year represented a slight decrease of 5%. Tabcorp explained that the dip in revenue primarily reflects the “current trading conditions.”

Focusing on group EBITDA, the company posted another decrease. For the six months ended December 31, 2023, Tabcorp reported group EBITDA of AU$170 million ($111.5 million), down by 14% year over year, as well as group EBIT of AU$50 million ($32.8 million), representing a year-over-year decrease of 32%.

The Company Continues to Gain Market Share

Despite the decrease in revenue and group EBITDA, Tabcorp confirmed that it continues to improve its market share. The company said that this positive progress is the result of the execution of its TAB25 strategy. Moreover, Tabcorp explained that the results highlight its strong financial position “gearing 0.9 times as of 31 December 2023.”

“Tabcorp’s transformation is on track. TAB’s improving market share trend highlights this, and the broader operational result demonstrates the substantial progress we have made as a company.“

Adam Rytenskild, CEO and managing director at Tabcorp

Adam Rytenskild, Tabcorp’s managing director and CEO, shared his excitement about the latest results. He revealed that the company’s total market share, as well as digital market share, grew in 1H24 when compared to the previous six-month period. Rytenskild said Tabcorp remains dedicated to its three-pillar strategy that revolves around investment in the competitiveness within the market in Australia, implementation of initiatives for growth and improved operational efficiencies, as well as “leveling the playing field for fees, taxes and regulation.”

“We have become a more digital business, underpinned by recent investments in AI, data andnew technology platforms,“

added Rytenskild

Speaking about TAB’s license in Victoria, Rytenskild deemed it a “game changer,” adding that the company expects to see an increase in its earnings from the state starting in August. Finally, he reiterated that the latest results underline the company’s strong market share and confirm that it is on track for significant growth in the future.