Tabcorp Results – Half Year Ended 31 December 2023
Tabcorp Holdings Limited reported a half-year statutory net loss of $636.8 million for the period ending 31 December 2023, significantly impacted by a non-cash impairment charge of $731.9 million.
Despite the loss, the company announced a 1H24 interim dividend of 1.0 cents per share, fully franked, with a payout ratio of 111%, indicating confidence in its financial position and future.
Group revenue decreased by 5% to $1,210 million compared to the previous year, mainly due to challenging trading conditions.
The company saw an increase in its Variable Contribution (VC) margin to 40.1%, attributed to a more level playing field in Queensland.
EBITDA and EBIT fell by 14% and 32% respectively, reflecting the tough market conditions.
Tabcorp was awarded a new exclusive Victorian Wagering and Betting Licence, expected to significantly boost earnings in Victoria from August.
The company is focusing on its TAB25 strategy to regain market share and improve efficiency, including investments in technology, AI, and a partnership with Accenture for IT and business processes.
Wagering and Media division revenue declined by 4%, with digital competitiveness improving as indicated by increased market shares in turnover and revenue.
Gaming Services revenue and EBITDA declined due to the sale of MAX Performance Solutions and eBet businesses, though Integrity Services within this segment showed strong performance.
January 2024 trading showed a continued decline in group revenue and wagering turnover, but with improved yields and efficiency in wagering net revenue.
The company maintains a strong balance sheet with net debt at $193 million and gearing at 0.9 times, positioning it well to complete its transformation strategy and fund the new Victorian licence from existing debt capacity.
This announcement is a summary of the company approved ASX announcement on 22/2/2024 and is based on facts.