Tabcorp’s 8.8% FY2021 Growth Enough to Reverse Losses

Australian gambling group Tabcorp Holdings released its financial year 2021 report, posting 8.8% growth in year-over-year revenue to return to a profit.

Impressive Performance with Restricted Operations

Tabcorp Holdings registered AU$5.7 billion ($4.16 billion) in revenue for the full year ended June 30, 2021, an increase from the AU$5.2 billion ($3.80 billion) the group generated in the year prior.

FY2021 earnings before interest, tax depreciation and amortization (EBITDA) reached AU$1.1 billion ($803 million), compared to AU$995 million ($726 million) in the previous fiscal year. This helped Tabcorp to return to profit, posting AU$269 million ($196 million) in profit, to reverse the FY2020 AU$870 million ($635 million) loss.

Lotteries and Keno division delivered record revenues of AU$3.2 billion ($2.34 billion), to continue the trend of growth established since 2017 and contribute to EBITDA with AU$620 million ($453 million), 14% higher than in FY2020.

Following the merger with Tatts, Tabcorp’s TAB Wagering & Media unit posted full-year growth for the first time, registering revenue of AU$2.3 billion ($1.68 billion) and EBITDA of AU$414 million ($302 million).

Tabcorp attributed the growth to the unit’s digital and omnichannel offering, which saw a major improvement during the year and recorded a 27% increase in turnover to offset lockdown impact on the retail business.

Stifling under the COVID-19-related lockdown orders enforced by Australian authorities, Tabcorp’s Gaming Services unit, which supplies the country’s leisure and entertainment venues with gaming machines, registered revenue of AU$183 million ($134 million), down 17% compared to the previous reporting period, while EBITDA came out at AU$70 million ($51 million), also down by 16%.

Demerger Preparations Continue

Looking into the future of the group, Tabcorp continues to work on the proposed demerger of its lottery and keno businesses, with the transaction that will create two separate business entities, Lotteries & Keno Co and Wagering & Gaming Co, expected to close by June 2022.

The rationale for the proposed demerger of lotteries and keno is compelling and represents the next phase in the new journey of Tabcorp. We are working to ensure that the standalone businesses are set up for success into the future.”

David Attenborough, CEO, Tabcorp Holdings

In July, Tabcorp rebuffed all buyer candidates for its media and gaming businesses, among which were Apollo Global Management investment fund, BetMakers Technology Group and Entain, and surprisingly announced it would spin off the businesses as a separate unit on the Australian Securities Exchange (ASX). The fiscal year report underlined the intrinsic value of the units and justified the decision of the Board.

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