Tabcorp (TAH) H1 2026 earnings summary

Executive summary

• Group revenue rose 1.0% year-over-year to $1,344.9m, with EBITDA up 14.3% to $217.4m and EBIT up 18.9% to $110.2m, reflecting strong cost discipline, strategic execution, and the full benefit of the reformed Victorian Wagering Licence.

• NPAT before significant items increased 61.5% to $35.7m, while statutory NPAT declined 14.2% due to $14.0m in significant items related to the Victorian Licence and transformation costs.

• Interim dividend of 1.5 cps, unfranked, up 50% year-over-year, with a payout ratio of 56% of adjusted EPS.

• Strategic initiatives advanced, including a new retail commercial model, National Tote rollout, unique in-play product, and acquisition of VIC & SA thoroughbred media rights.

• Technology upgrades and regulatory milestones, such as ACMA clearance for TAB Live, position the business for further growth.

Financial highlights

• Group EBITDA before significant items was $217.4m, up 14.3% year-over-year; EBIT before significant items was $110.2m, up 18.9%.

• Operating expenses decreased 1.1% year-over-year to $350.2m; underlying opex down 3.7%.

• Capital expenditure was $50.8m, down from $57.4m in 1H25, with 71% allocated to growth and transformation.

• Interim unfranked dividend of 1.5 cps declared, 50% higher than the prior period, with a 56% payout ratio.

• Adjusted EPS rose 42.1% to 2.7 cps; statutory EPS was 0.9 cps.

Outlook and guidance

• Wagering turnover environment expected to remain similar in the second half, with modest growth anticipated.

• FY26 CapEx forecast unchanged at $120m–$140m, with increased spend in H2 for modernized betting terminals and TAB Live rollout.

• Full-year cash conversion expected between 90% and 100%; minimal cash income tax expected.

• Additional $5m in 2H26 opex for 2026 FIFA World Cup advertising and promotion.

• Dividends unlikely to be franked in near term due to low franking credit balance.