Tabcorp revenue rises 0.8% to AU$2.64bn as FY26 profit improves

Tabcorp has reported group revenue of AU$2.64bn (US$1.89bn) for FY26, an increase of 0.8% year-on-year, as earnings growth outpaced the operator's revenue increase.

Group EBITDA before significant items rose 10.3% to AU$431.7m, while statutory net profit after tax increased 26.5% to AU$46.3m. 

Net profit after tax before significant items was AU$71.1m, up 43.6%. The results put all three core financial measures ahead of FY25.

The EBITDA margin increased from 15% to 16.4%, supported by cost controls and the first phase of Tabcorp's revised retail commercial model. Group operating expenses increased 0.5% to AU$700.7m, although underlying operating expenses fell 0.8% after adjusting for changes associated with the Victorian Wagering and Betting Licence.

Wagering and Media remained Tabcorp's largest division, generating AU$2.45bn in revenue, up 0.7%, and AU$361.8m in EBITDA, an increase of 9.9%. Domestic wagering revenue increased 0.9%, while international wagering revenue fell 3.7%, primarily due to softer trading in Hong Kong during the second half.

Sports turnover increased 8.3% and Digital-In-Venue turnover grew 9.1%. The operator is continuing to invest in its retail channel, including the rollout of its Next-Gen betting terminals.

Tabcorp also remains subject to an ongoing AUSTRAC investigation while continuing work on its financial crime controls. The operator said it is cooperating with the regulator during the investigation.

Tabcorp MD & CEO, Gillon McLachlan, said: "Midway through our turnaround journey, we're executing on the plan, continuing to exercise cost and capital discipline and the Company is delivering earnings growth."

The operator ended FY26 with net debt of AU$533m and reported leverage of 1.2x. Its drawn debt facilities had a weighted average maturity of 4.9 years, while liquidity stood at AU$1.16bn.

For FY27, Tabcorp expects domestic wagering turnover growth to remain broadly consistent with FY26, excluding the FIFA World Cup. Operating expense growth is expected to track general inflation of 3% to 3.5%, while capex is forecast at up to AU$160m.

Earlier this month, Tabcorp agreed to acquire BetMakers Technology Group in a deal with an enterprise value of approximately AU$267m, targeting AU$30m in annual cost synergies by the end of the second year of ownership. Completion is targeted for the third quarter of FY27, subject to shareholder, court and regulatory approvals.