Tabcorp Holdings Limited, one of Australia’s leading gambling and entertainment companies, has reported its earnings results for the half-year that ended December 31, 2022. The company’s financial performance was strong, with a $54 million profit, showing impressive growth across all business segments.
Alongside the report came ambitious goals set for 2025. Namely, the company hopes to boost its digital revenue market share to 30% by the abovementioned year. An operating expense reduction was also mentioned as part of the company’s long-term plans.
As many Australian consumers are looking to play online pokies at international operators, Tabcorp has been tirelessly building its national digital product. Throughout the six months, the company saw its digital market share reach 25.1%, with an 8.3% increase driven by the new TAB App.
In 2021, Tabcorp strategically decided to split its lottery and keno businesses. Tabcorp’s decision was a bold move that has paid off in spades. The demerger created two standalone entities: The Lottery Corporation, which is now responsible for all lottery and keno operations, and Tabcorp Holdings Limited, which focuses on wagering and media, as well as gaming services.
One of the key reasons behind Tabcorp’s decision to split these verticals was to increase its online presence. With more people than ever before turning to online gaming options due to COVID-19 restrictions, it makes sense that Tabcorp would want to capitalise on this trend.
Since releasing a digital wagering app similar to casino games found at online casinos earlier this year, Tabcorp has seen significant growth in this area. By offering punters an exciting new way to wager from the comfort of their homes, Tabcorp is positioning itself as a leader in online betting.
The company’s half-year results showed an 11% increase in revenue of $1.15 billion compared to the previous period.
Although the COVID-19 pandemic constrained it, Tabcorp bounced back with an impressive 58% growth in cash wagering revenue in the first half of 2022 compared to the previous year. Total Wagering Revenue Market Share also jumped from 31% to 34.8%.
The company’s EBITDA was $197 million, up an impressive 24% from last year. Its Wagering and Media sector had an 8.6% increase in revenue from $1,073.4 billion to $1,165.7 billion.
The Gaming Services segment was a standout performer during the half-year period. It reported sales revenue of $108.8 million – an increase of 36.7% compared to last year – driven by solid growth in digital channels and fixed-odds betting.
Overall, it’s safe to say that Tabcorp has had a good year. A drop in turnover was noted, but the increase in active users from 780,000 to 797,000 was a hopeful sign.
The company unveiled its new transformation plans, aiming for a 5% increase in its digital revenue market share by 2025. This ambitious target is part of the company’s TAB25 strategy, which plans to transform its entire wagering ecosystem.
Adam Rytenskild, Tabcorp’s Managing Director and CEO, expressed his excitement about the TAB25 strategy and future prospects. “Today, we release TAB25 – our target for Tabcorp by FY25. I’m excited to announce that we are targeting 30% digital revenue market share by FY25,” he said.
Tabcorp’s transformation plans include overhauling its wagering ecosystem, improving customer experience, and increasing digital capabilities.
The company has already made significant progress towards this goal by launching its new mobile TAB App. The new social betting features on the TAB App delivered a 35% increase in week-by-week customer profile creation. The Same-Game Multi (SGM) feature saw a significant customer uptake, with a 28% uplift in activities just 25 days post-launch. The TAB app also revamped its NBA stats centre, providing an 87% higher turnover rate from its stat users.
Tabcorp also plans on changing its operating model since successfully completing its demerger. Based on the CEO’s words, Tabcorp can implement a new operating model that is simpler, more agile and delivers results faster to its customers.
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