Key points
- Group revenue up 10.1% and EBITDA up 12.0% on 1H24
- Benefits of reformed Victorian Wagering and Betting Licence
- Strong cost discipline with $30m of targeted FY25 opex savings
Full summary
Tabcorp has reported strong financial results for the first half of FY25, with Group revenue of $1,331.3m, up 10.1%, and Group EBITDA of $190.2m, up 12.0%, on the prior corresponding period. The company has benefited from its reformed Victorian Wagering and Betting Licence, which commenced on 16 August 2024 and delivered an EBITDA uplift of $36.4m in the period. Tabcorp has also maintained strong cost discipline, with underlying operating expenses 1.8% lower compared to 1H24, and has increased its targeted FY25 operating cost savings to $30m, up from $20m previously. Wagering and Media revenue was up 11.3% on 1H24, driven by the assumption of 100% of Victorian revenue following the end of the joint venture with the Victorian Racing Industry. Integrity Services EBITDA was up 18.4% on an underlying basis. Net Profit After Tax before significant items was $22.1m, an increase of 25.6% on 1H24. The company has announced a 1H25 interim dividend of 1.0 cents per share, unfranked. Tabcorp is executing on its strategy, with a focus on improving capability, driving growth, delivering unrivalled omni-channel experiences, and establishing a standalone media entertainment business. The company is targeting FY25 capital expenditure of $110m-$120m and depreciation and amortisation of $200m-$210m.
Guidance
Tabcorp is targeting FY25 operating cost savings of $30m, up from $20m previously. FY25 capital expenditure is expected to be in the range of $110m-$120m, and FY25 depreciation and amortisation is expected to be in the range of $200m-$210m.
Outlook
Tabcorp is executing on its strategy, with a focus on improving capability, driving growth, delivering unrivalled omni-channel experiences, and establishing a standalone media entertainment business. While the wagering market has remained soft, the company has seen a modest improvement in recent months and will remain focused on executing its evolved strategy and business transformation.