Tabcorp (TAH) H2 2026 earnings summary

Executive summary

• Group revenue grew 0.8% year-over-year to $2,636.3M, with EBITDA up 10.3% to $431.7M and NPAT before significant items up 43.6% to $71.1M, reflecting strong cost control and execution of strategic initiatives.

• Strategic milestones included the launch of new products, agreement on a National Tote, rollout of Next-Gen betting terminals, and the launch of TAB LIVE, positioning for future growth.

• Announced acquisition of BetMakers to modernize technology and drive global B2B growth, targeting completion in 3Q FY27 and $30M in cost synergies by Year 2.

• Maintained strong cost discipline, reducing underlying operating expenses by 0.8% and improving EBITDA margin by 140bps to 16.4%.

• Continued focus on culture, leadership, compliance, and uplift in financial crime and cybersecurity capabilities, including ongoing AUSTRAC investigation.

Financial highlights

• Revenue increased 0.8% to $2,636.3M; EBITDA up 10.3% to $431.7M; EBIT before significant items up 15.9% to $218.7M; statutory NPAT up 26.5% to $46.3M.

• Adjusted EPS grew 33% to 5.2cps; full year dividend increased 50% to 3.0cps, representing a 58% payout ratio.

• Operating cash conversion at 93%, with underlying cash conversion at 98%.

• Capex of $140M in FY26, with 71% allocated to growth and transformation; further increase to up to $160M expected in FY27.

• ROIC improved by 240bps to 12.0%; leverage reduced to 1.2x; liquidity at $1,161M; average debt maturity extended to 4.9 years.

Outlook and guidance

• Domestic wagering turnover growth in FY27 expected to be broadly consistent with FY26, excluding FIFA World Cup impact.

• FY27 EBITDA anticipated to benefit from Next-Gen terminal rollout and Phase 2 retail model changes.

• Opex growth guided at 3%-3.5% for FY27, with about half related to regulatory/risk uplift and loyalty programs.

• Capex expected to increase up to $160M in FY27; D&A forecast at $225M–$235M.

• BetMakers acquisition completion targeted for 3Q FY27, subject to regulatory and other conditions.