- Following a series of moves with Tatts Group and UBET, in 2022, Tabcorp exited the group.
- Tabcorp is now strictly a wagering and media company without its lottery and keno operations.
- TAB – the multichannel wagering brand – is Australia’s largest.
- The media operations centre Sky Racing is owned by Tabcorp.
Tabcorp has bold plans with its Tab25 strategy to increase revenue and cut costs while reaching 30% market share in digital waging revenue in Australia. Now that the company is free of its lottery and keno operations, it has announced its Tab25 plans to stretch over the next six half-year reporting periods.
The company unveiled the strategy in the Half Year 2023 financial results announcement. Tab25 has ambitious targets in three areas:
- 30% digital revenue market share.
- Reduction in operating expenses to between $600 and $620 million dollars, and
- 10% return on invested capital.
Given the timing of the asset split, financial results are difficult to interpret at best. The Half Year 2023 results showed an 11% revenue increase reported with statutory net profit after tax of $52 million dollars. That compared with $175 million dollars in the first half of 2022, with all operations contributing.
The most recent results for the first quarter of FY 2024 showed group revenue down 6.1%, with wagering and media revenue down 5.4%.
Year over year the share price is down 36.45%.
Top Australian Brokers
An analyst at Fairmont Equities has a BUY recommendation on Tabcorp Holdings shares, pointing to the share price trading at a significant discount, falling from $1.10 on 5 September to $0.695 on 7 December.
Don’t Buy Just Yet
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