Tabcorp (TAH) H2 2025 earnings summary

Executive summary

• Group revenue rose 11.8% to $2,614.6m, with EBITDA up 23.2% and EBIT up 93.7% year-over-year, driven by the new Victorian Wagering and Betting Licence, cost discipline, and operational improvements, including a leaner structure and leadership changes.

• Opex savings of $39m were achieved, capex reduced to $115m, and leverage fell to 1.6x.

• Net Profit After Tax before significant items was $49.5m, up 76.8% year-over-year; statutory NPAT was $36.6m, rebounding from a prior year loss.

• New leadership structure and strategic initiatives, including retail model evolution and digital innovation, were implemented.

Financial highlights

• Revenue: $2,614.6m (+11.8% YoY); EBITDA: $391.5m (+23.2% YoY); EBIT: $188.7m (+93.7% YoY).

• Adjusted EPS rose to 3.9cps, and an unfranked dividend of 2.0cps was declared, up 54%.

• Underlying operating cash flow conversion reached 99%, with free cash flow of $356m supporting debt reduction.

• Capex for FY25 was $115m, down $35m from FY24.

Outlook and guidance

• Capex for FY26 expected between $120m–$140m, with increased investment in retail and digital initiatives.

• Modest growth anticipated in the wagering market, with stabilization observed in the second half of FY25 and full-year benefit from the Victorian Licence in FY26.

• Focus remains on executing the current strategy, with further cost savings expected to offset inflation and support reinvestment.

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