Date: 23.02.2024

by Mateusz Mazur

Tabcorp Reports Net Loss in H1 2024 Amidst Strategic Investments

Australian bookmaker Tabcorp Holdings Limited has disclosed its financial performance for the first half of 2024, revealing a Group Statutory Net Loss after tax of AU$636.8 million.

The loss includes a substantial non-cash impairment charge to the Wagering and Media business, underscoring the challenges and strategic shifts the company is navigating.

Financial Overview and Strategic Moves

Despite the net loss, Tabcorp’s revenue stood at AU$1.2 billion, a slight decrease from the previous year. However, the company showcased an improved Variable Contribution (VC) margin and is making significant strides in market competitiveness and digital transformation.

Tabcorp’s Managing Director & CEO, Adam Rytenskild, emphasized the company’s focus on regaining market share and leveraging its extensive wagering and media network. “TAB’s improving market share trend highlights this, and the broader operational result demonstrates the substantial progress we have made as a company. We continue to focus on the three pillars of our strategy. Invest in customer and competitiveness to Win back the Australian market, Level the Playing Field for fees, taxes and regulation and reshape our cost base for efficiency and growth.

Total market share and digital market share grew compared to the prior half. This is another positive step having stopped the decline. We are seeing positive signs from targeted investment in product, brand, data, technology and retail as we start to leverage the strength of an extensive integrated wagering and media network throughout the country.

We have become a more digital business, underpinned by recent investments in AI, data and new technology platforms. Combined with our TAB brand embedded in over 4,000 venues, we see a significant omni-channel opportunity that we are yet to capitalise on.”

Victorian License: A Turning Point

A key highlight for Tabcorp is the acquisition of the new exclusive Victorian Wagering and Betting Licence, which Rytenskild describes as a “game changer.” This new license is expected to substantially boost earnings in Victoria, marking a significant milestone in Tabcorp’s strategic roadmap.

Amidst these developments, Tabcorp has faced regulatory scrutiny, with a recent fine for offering inducements to gamble and facing charges related to minors accessing gambling machines. These incidents highlight the regulatory landscape’s complexities and the need for stringent compliance measures.

Our Comment on Tabcorp’s Journey

Tabcorp’s H1 2024 report paints a picture of a company in transition, facing financial hurdles but also laying down a strategic foundation for future growth.

The acquisition of the Victorian License and investments in digital and AI technologies signal Tabcorp’s commitment to evolving with the industry’s demands. As the company navigates regulatory challenges, its focus on innovation and market competitiveness positions it for a potentially stronger performance in the evolving Australian wagering market.