Tabcorp Holdings (TAH) investor relations material

Executive summary

• Achieved double-digit growth in revenue, EBITDA, and EBIT year-over-year, driven by the reformed Victorian Wagering and Betting Licence, operational improvements, and disciplined cost management.

• Delivered $39M in OpEx savings, surpassing guidance, and reduced net debt by $251M, resulting in a leverage ratio of 1.6x.

• Implemented a new leadership structure and strategic initiatives, including retail model evolution, digital innovation, and omnichannel retail.

• Smooth transition to the new Victorian license contributed an $84M EBITDA uplift over 10.5 months.

• Focused on strategy execution, team capability, and culture, with new customer offerings.

Financial highlights

• Group revenue increased 11.8% to AUD 2.6B year-over-year, with EBITDA up 23% to AUD 392M and EBIT up 94% due to prior year impairments and license uplift.

• NPAT before significant items increased 77% to $49.5M; statutory NPAT was $36.6M, 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 at 99%; unlevered free cash flow of $356M enabled significant debt reduction.

• CapEx reduced 24% year-over-year to $115M, improving return on invested capital.

Outlook and guidance

• Expecting modest growth in the wagering market for FY 2026, with continued focus on cost discipline and reinvestment in strategy.

• CapEx guidance for FY 2026 set at $120M–$140M, with D&A expected between $215M–$225M, mainly for digital assets.

• Ongoing cost savings to offset inflation and support strategic investments.

• Dividends are unlikely to be franked in the near term due to tax offsets.