Punters take some skin off but gambling giant wagers on
Lucky punters weighed on Tabcorp’s interim results, but the gambling giant is still seeing a strong increase in the number of young people placing bets.
The so-called “customer-friendly results” took place in the last six months of 2025, during the NRL and AFL grand finals and spring horse racing carnival period.
Domestic betting revenue fell 2.5 per cent before the effects of Victorian licensing, despite a modest increase in turnover due to below-average returns.
“The decline in yield compared to long-term averages was driven by customer-friendly results,” Chief Financial Officer Mark Howell said in an earnings briefing Wednesday.
“Some of these weak returns rebounded towards the end of November and December.”
Tabcorp estimates the return impact cost about $10 million in net income compared to long-term averages, according to Mr. Howell.
Tabcorp’s first-half net profit fell 14 per cent on the previous period to $21.7 million, while group revenue rose one per cent to $1.3 billion.
The group’s underlying earnings (excluding interest, tax, depreciation and amortization) rose nearly 14 percent to $217.4 million, above market expectations.
Total earnings from the betting and media businesses rose almost 16 percent to $181.4 million.
CEO Gillon McLachlan said he was proud Tabcorp was able to deliver double-digit earnings growth in the half-year at a time when betting operators have been hit by “low returns”.
“We have been able to imbibe this with a strong execution, particularly on the cost side, and through the diversity of our business,” he said.
Mr McLachlan said Tabcorp’s game plan was to offer punters an unrivaled omni-channel experience.
“We continue to innovate with new products and a better look and feel to create a true racing and sports entertainment offering,” he added.
The former AFL boss said the TAB brand was becoming “younger, sports-focused and experiential”.
“Turnover among 18 to 24-year-olds is up 14 per cent,” he said, adding that interest in tentpole assets such as Liv Golf and US Super Bowl sports was an example of how Tabcorp was reaching a new group.
“We know customers want life experiences and attention spans are shortening. Stories sell and brand connection is increasingly important.”
Tabcorp, which expects betting turnover in the second half of the year to be similar to the first, announced an interim dividend of 1.5 cents, up 50 per cent.
Its shares rose almost 16 per cent to 98.5 cents in morning trade.
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