Tabcorp (TAH) H1 2025 earnings summary

Executive summary

• Group revenue rose 10.1% year-over-year to $1,331.3m, with EBITDA up 12.0% to $190.2m and NPAT rebounding to $25.3m from a prior loss, driven by the reformed Victorian Licence and cost discipline.

• EBIT increased 85.4% to $92.7m, and NPAT before significant items rose 25.6% to $22.1m.

• Strategic evolution underway, shifting from digital-only to an omnichannel approach leveraging unique assets across wagering, media, and retail.

• Leadership changes and a new vertical structure implemented to enhance accountability and execution.

• The reformed Victorian Licence contributed a $36.4m EBITDA uplift in 4.5 months.

Financial highlights

• Revenue: $1,331.3m (+10.1% YoY); EBITDA: $190.2m (+12.0% YoY); EBIT: $92.7m (+85.4% YoY); NPAT: $25.3m, reversing a prior year loss.

• EPS before significant items: 1.9c; statutory EPS: 1.1c; interim unfranked dividend of 1.0c per share, payout ratio 53%.

• Net debt at $753m, reduced by $107m, with leverage at 2.2x and undrawn facilities and cash of $634m.

• Capex reduced 25% to $57.0m, with 67% allocated to growth and transformation.

• Operating cash conversion at 108% (88% underlying).

Outlook and guidance

• FY25 opex savings target raised to $30m, up from $20m; capex guidance lowered to $110m–$120m.

• Depreciation and amortisation expected at $200m–$210m for FY25.

• No debt maturities until FY28; leverage at 2.2x, below the target of <2.5x.

• Modest improvement seen in the wagering market in recent months, but conditions remain soft.

• Company unlikely to frank dividends in the near term due to tax refunds and carried forward tax losses.