Tabcorp (TAH) H2 2025 earnings summary

Executive summary

• Group revenue rose 11.8% to AUD 2.6 billion, with EBITDA up 23.2% and EBIT up 94%, driven by the reformed Victorian Wagering Licence, cost savings, and operational improvements.

• Achieved double-digit growth in key metrics, implemented a leaner organization with a reduction of 230 roles, and introduced a new vertical structure for faster execution.

• Opex savings of AUD 39 million were achieved, capex reduced to AUD 115 million, and leverage fell to 1.6x.

• New leadership structure and strategic initiatives, including retail model evolution and digital innovation, were implemented.

• Successfully transitioned to the new Victorian wagering licence, delivering an EBITDA uplift of AUD 83.7 million over 10.5 months, and launched new customer offerings and omnichannel experiences.

Financial highlights

• Group revenue grew 11.8% year-over-year to AUD 2.6 billion; EBITDA increased 23% to AUD 392 million; EBIT rose 94%, aided by prior year impairments and licence benefits.

• NPAT before significant items increased 76.8% to AUD 49.5 million; statutory NPAT was AUD 36.6 million, rebounding from a prior year loss.

• Adjusted EPS rose to 3.9cps, and an unfranked dividend of 2.0cps was declared, up 54%.

• Underlying operating cash flow conversion reached 99%, with free cash flow of AUD 356 million supporting debt reduction.

• CapEx for FY25 was AUD 115 million, down 24% from the prior year.

Outlook and guidance

• CapEx for FY26 expected between AUD 120–140 million, with increased investment in retail and digital initiatives.

• Modest growth anticipated in the wagering market, with stabilization observed in the second half of FY25 and full-year benefit from the Victorian Licence.

• Focus remains on executing the current strategy, with further cost savings expected to offset inflation and support reinvestment.

• D&A forecast at AUD 215–225 million, and dividends are unlikely to be franked in the near term due to tax offsets.