Tabcorp Lottery and Keno H1 FY2022 Results Drive Share Price up 5%

Australian racing and sports betting firm Tabcorp has seen an increase in its revenue in the first half-year of FY 2022. The surveyed period ended on December 31, 2021, and resulted in revenues of AU$2.93 billion ($2.11 billion) or up 2.2%. The period is noted down as H1 2022 because of the specific way Tabcorp does its bookkeeping. Much of these results were owing to an uptick in lotteries and keno operations.

Lotteries and Keno Boosts Business

The group-wide profit suffered 5.4% year-over-year and ended at AU$175 million ($126 million), but lotteries and keno surged by 10.9% and clocked in AU$1.74 billion ($1.25 billion). This resulted in EBITDA increasing by 15.1% to AU$358 million or $258 million. Lotteries and keno proved an unlikely torchbearer this half-year with sports betting slowing down noticeably.

The sports betting and media segment retracted 9.8% to AU$1.07 billion ($770 million). The division’s EBITDA dropped 34.8% to AU$148 million ($107 million). However, this was mostly due to the obligatory shuttering of retail operations in NSW because of pandemic restrictions. Tabcorp managing director and CEO David Attenborough remained confident about the company’s standing:

“The record result from the Lotteries & Keno business again showcased the broad appeal of the business’ much-loved products and brands, and the success of its omni-channel strategy.”

Tabcorp managing director and CEO David Attenborough

Attenborough acknowledged that the company had faced serious difficulties in NSW and Victoria because of the retail closures which have impacted the company’s betting operations.

Retail Closures Take Their Toll in H1 2022

Even though Tabcorp has been digitalizing its products, its performance has been far stronger with retail venues open, mostly because of the way the industry is regulated in Australia. He mentioned the pandemic and the measures that the company had taken to protect its employees:

“As we have throughout the pandemic, our focus was on managing the operational and financial impacts on our businesses, as well as prioritizing our people’s wellbeing and supporting the recovery of our business partners.”

Tabcorp managing director and CEO David Attenborough

The results also resulted in a 5% surge of the company’s share price today and trade for AU$5.43 ($3.91). Tabcorp is also planning on several developments for this year. With this metric in mind, Tabcorp’s share price managed to increase by 23% in the past 12 months.

A new TAB app in the pipeline will launch in 2022. The company is further going to introduce improvements to its Oz Lotto as the company finalizes the demerger of its Lotteries and Keno businesses, pending regulatory approvals.