Full Year Results - ASX Release
| Stock | Tabcorp Holdings Ltd (TAH.ASX) |
|---|---|
| Release Time | 27 Aug 2025, 8:56 a.m. |
| Price Sensitive | Yes |
Tabcorp Reports Stronger Earnings and Fitter Company
- Group Revenue of $2,614.6m, up 11.8%, Group EBITDA of $391.5m, up 23.2%
- Strong cost discipline with underlying opex reduction of 2.4% and FY25 opex savings of $39m
- Benefits of new Victorian Wagering and Betting Licence, estimated EBITDA uplift of $83.7m
Tabcorp has reported stronger earnings and a fitter company in FY25, with Group Revenue of $2,614.6m, up 11.8%, and Group EBITDA of $391.5m, up 23.2%. The company has maintained strong cost discipline, with underlying opex reduction of 2.4% and FY25 opex savings of $39m, ahead of the previously upgraded target of $30m. The benefits of the new Victorian Wagering and Betting Licence, which commenced on 16 August 2024, have delivered an estimated EBITDA uplift of $83.7m for 10.5 months in FY25. Wagering and Media revenue increased 12.8% and EBITDA grew 31.0%, with a 190bps increase in EBITDA margin. Integrity Services EBITDA increased 5.8% on an underlying basis. The company has a strong financial position, with net debt of $609m and a reduction in leverage to 1.6x net debt/EBITDA. The company has implemented a new leadership structure, focused on cost and capital discipline, and executed on its evolved strategy to leverage its unique offerings across Retail, Digital, and Media.
In FY26, Tabcorp expects the wagering market to modestly grow year-on-year. The new Victorian Licence will benefit earnings for a full 12 months in FY26, compared to 10.5 months in FY25. Capex is expected to be in the range of $120m to $140m, and depreciation and amortisation in the range of $215m-$225m. Cash tax is expected to be minimal due to carried forward losses and R&D tax offsets.
Tabcorp's focus remains on operationalising its evolved strategy, including the delivery of unrivalled omnichannel experiences for customers. While initial changes to the retail commercial model are expected to yield some benefit in FY26, these benefits are expected to be largely reinvested into venues to drive increased customer engagement. The company will maintain its heightened focus on cost management in FY26 to partially offset inflationary pressures.