Tabcorp (TAH) H1 2025 earnings summary

Executive summary

• Group revenue rose 10.1% year-over-year to $1,331.3m, with EBITDA up 12.0% and EBIT up 85.4%, driven by the reformed Victorian Licence and cost discipline.

• Statutory NPAT was $25.3m, rebounding from a $636.8m loss in the prior period, reflecting the absence of prior year impairments and benefits from the new Victorian Licence.

• Strategic evolution underway, shifting from a digital-only focus to an omnichannel approach leveraging unique assets across wagering, media, and retail.

• Leadership structure was streamlined, with new appointments and a vertical structure to enhance accountability and execution.

• Opex savings target for FY25 increased to $30m, with capex guidance reduced to $110m–$120m.

Financial highlights

• Revenue: $1,331.3m (+10.1% YoY); EBITDA: $190.2m (+12.0% YoY); EBIT: $92.7m (+85.4% YoY).

• NPAT: $25.3m, compared to a $636.8m loss in the prior period (impacted by $731.9m after-tax impairment last year).

• EPS before significant and certain non-cash items: 1.9c; statutory EPS: 1.1c.

• Capex: $57.0m, down 25% year-over-year, with 67% allocated to growth and transformation.

• Interim unfranked dividend of 1.0c per share, payout ratio 53%.

Outlook and guidance

• FY25 opex savings target increased to $30m; capex guidance reduced to $110m–$120m.

• No debt maturities until FY28; leverage at 2.2x, below the target of <2.5x.

• Continued focus on cost discipline, operationalizing strategic initiatives, and unlocking value from assets.

• Modest improvement seen in the wagering market in recent months, but conditions remain soft.

• Company unlikely to frank dividends in the near term due to tax refunds and carried forward tax losses.