Tabcorp’s Revenue Climbs 11.8% as EBITDA Hits $391.5 Million

Strong Financial Momentum

Tabcorp Holdings Limited has reported a significant uplift in its full-year results for FY25, showcasing the tangible benefits of regulatory changes and operational discipline. The company’s group revenue climbed 11.8% to $2.615 billion, while EBITDA surged 23.2% to $391.5 million, reflecting a successful transition to the new Victorian Wagering and Betting Licence that commenced in August 2024.

Underlying operating expenses were trimmed by 2.4%, exceeding the company’s cost-saving target with $39 million in opex reductions. This leaner cost structure, combined with an improved wagering and media offering, contributed to a 76.8% jump in net profit after tax before significant items, reaching $49.5 million.

Victorian Licence and Omnichannel Strategy

The Victorian licence reform has been a pivotal driver, delivering an estimated EBITDA uplift of $83.7 million for 10.5 months in FY25. This regulatory shift allowed Tabcorp to assume full control over Victorian wagering revenue, boosting total wagering revenue by 15.9%. While domestic wagering turnover showed a slight decline, international wagering and media revenues grew steadily, supported by new customers and expanded vision distribution.

Tabcorp’s leadership has also restructured to enhance wagering and media capabilities, appointing new executives to align with its evolved omnichannel strategy. This approach aims to integrate retail, digital, and media assets to create a seamless sports and racing entertainment experience, positioning the company for future growth.

Balance Sheet Strength and Dividend Policy

Financial discipline remains a hallmark of Tabcorp’s FY25 story. Net debt was reduced to $609 million, with leverage falling to a conservative 1.6 times EBITDA. The company maintains strong liquidity with undrawn facilities and cash reserves totaling $803 million, and no debt maturities until FY28.

Despite minimal cash tax payments due to carried forward losses and R&D offsets, Tabcorp declared a full-year dividend of 2.0 cents per share, up 54% from the prior year. The dividend is unfranked, reflecting the impact of prior tax refunds and ongoing tax position constraints.

Looking Ahead

Tabcorp expects modest wagering market growth in FY26, with the full-year benefit of the Victorian licence now in play. Capital expenditure is forecast between $120 million and $140 million, with continued focus on cost management to offset inflationary pressures. The company’s strategic emphasis on omnichannel customer engagement and tote innovation signals a commitment to unlocking further value from its unique asset base.

Managing Director Gillon McLachlan highlighted the company’s transformation into a “fitter business” with clearer accountability and a bolder strategic plan. As Tabcorp navigates a competitive and evolving market, its ability to integrate assets and innovate will be critical to sustaining momentum.