Tabcorp (TAH) H1 2026 earnings summary

Executive summary

• Revenue for 1H26 rose 1.0% year-over-year to AUD 1.34 billion, reflecting the full benefit of the reformed Victorian Wagering Licence and improved omni-channel execution.

• EBITDA before significant items increased 14.3% to AUD 217.4 million; EBIT before significant items rose 18.9% to AUD 110.2 million, driven by cost control and strategic initiatives.

• NPAT before significant items grew 61.5% to AUD 35.7 million, while statutory NPAT declined 14.2% due to significant items and higher tax expense.

• Strategic initiatives included the rollout of a National Tote, new product launches, refreshed brand targeting younger audiences, and acquisition of VIC & SA thoroughbred media rights.

• Technology upgrades and regulatory milestones, such as ACMA clearance for TAB Live, position the business for further growth.

Financial highlights

• Group EBITDA margin improved by 190bps to 16.2% before significant items.

• Operating expenses decreased 1.1% year-over-year; underlying opex reduced 3.7% adjusting for the Victorian Licence.

• Interim unfranked dividend of AUD 0.015 per share declared, up 50% on PCP, with a 56% payout ratio.

• CapEx was AUD 50.8 million in H1, down from AUD 57.4 million in H1 FY25, with 71% allocated to growth and transformation.

• ROIC improved by 360bps to 10.5%.

Outlook and guidance

• Wagering turnover environment expected to remain similar in the second half, with modest growth anticipated.

• FY26 CapEx forecast unchanged at AUD 120–140 million, with increased spend in H2 for modernized betting terminals and TAB Live rollout.

• Full-year cash conversion expected between 90% and 100%; D&A expected at AUD 210–220 million.

• Phase 1 retail model benefits to be reinvested to drive customer engagement; additional AUD 5 million opex for FIFA World Cup advertising in H2.

• No debt maturities until FY28; dividends unlikely to be franked in the near term.