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As the company’s lottery and wagering units hold up against ongoing COVID-19 challenges, Tabcorp Holdings has announced improved group trading.
Tabcorp reported a 1.5 percent decrease in group revenues to AUS $2.87 billion when it released its 2020/2021 interim results (period ending 31 December).
Given the continued growth of its ‘lottery and keno’ division, Tabcorp underscored its marginal revenue decrease as a’ positive outcome ‘contributing +2 percent revenue increase to AUS $1.61 billion, coupled with the improved performance of its TAB wagering unit achieving a +1 percent revenue increase to AUS $1.19 billion.
Lottery and wagering sales increases offset drastic effects on the ‘Gaming Facilities’ unit of Tabcorp, which suffered a 53 percent decrease in revenue from hotel and club venue closures across Australia to AUS $66 million (2019/2020 AUS $150m).
Tabcorp records a period of EBITDA decline of 6.2 percent to AUS 560 million (2019/2020 AUS $597 million), accounting for Gaming Facilities impacts and final merger integration costs.
The ASX gambling group continues to run its optimisation program, navigating Covid headwinds, in which the company estimates that it will achieve AUS $95 million in group-wide EBITDA savings by year-end trading.
Tabcorp, updating investors, highlighted good prospects for its lottery and keno division, which in the coming months would greatly extend its distribution network in South Australia.
Meanwhile, as TAB units announced a clear emergence from lockdown, their wagering division will continue to concentrate on improving its ‘omnichannel strategy’ and platform infrastructure.
The improved trading performance of Tabcorp saw the company report AUS $207 million net profits after tax, down 3 percent from AUS $214 million results for 2019/2020.
Tabcorp Group CEO David Attenborough explained: “We are experiencing a strong recovery following the recent market challenges.
“The COVID-19 pandemic continued to impact Tabcorp’s group earnings in 1H21, with the retail closures and restrictions, especially in Victoria, having a material impact.
“However, we are pleased with the way our teams and partners responded to the substantial operational challenges the pandemic presented. COVID-19 has clearly demonstrated the importance of serving customers with a seamless, multi-channel experience. Investments made to modernize our digital offering in recent years drove significant benefits.”