Tabcorp announces FY2022 results, focuses on growth in FY2023

Tabcorp Holdings Limited, one of Australia’s most prominent betting giants, has posted its results for the 12-month period ending on June 30, 2022. The results cover FY 2022. The company saw good performance across the board, despite a minor slowdown in group revenue, brought on by pandemic challenges, and closures of Victoria and New South Wales properties in H1 FY 2022. Group statutory net profit after tax or NPAT reached $6.77bn compared to $269m in FY 2021.

Group revenue stood at $2.37bn, down 4.3% YOY. Group EBITDA from continuing operations was posted at $382m with pro-forma EBITDA standing at $361m. The results were welcomed by Tabcorp’s senior executives who saw the current financial results as the realization of the Group’s long-term strategy for sustained growth.

Tabcorp Managing Director and Chief Executive Officer, Adam Rytenskild, said that the Group has made significant efforts into reforging the business into a "competitive and growing business." Part of this focuses on the growth of thecompany’s existing customer base, Rytenskild explained in the report. Another has to do with the development of products that resonate with Australian sports fans.

Customer growth will be a buzzword for the company moving forward, Rytenskild continued, adding that the company has "reset" its business and culture. An updated version of the TAB App is in the works and will be available for the upcoming FIFA World Cup 2022 in Qatar this year.

The company is also working on two more digital products that should arrive before the year is out. FY 2023 will focus on executing the company’s immediate priorities, which involve simplifying the mobile experience and standing out from competitors.

This rapid business transformation will not undermine efforts to protect consumers, Rytenskild assured. However, he acknowledged that despite the robust results, FY 2022 was marked by COVID lockdowns and other challenges, making it more difficult for TAB to fully achieve what it had in mind.

Net debt of $20m, though puts the company in a very good position for the future. The debt excludes restricted cash and lease liabilities, however. Undrawn facilities remain at a good $810m, he added. Wagering and media revenue contracted by 5.1% from FY 2021 to $2.18bn. However, the reopening of retail venues should give the company a strong start in FY 2023.

As to gaming, gaming revenue improved during the year, up 5.3% to $193m. offered some insight. July Group revenue is already up 14.6% from the digital market and up another 11.2% from the wagering and media business.

The new TAB App has enjoyed a good reception among select customers with the product scheduled to release in September 2022. The company sees the changes enacted in Queensland as a positive development. A similar reform is underway in Victoria. Tabcorp remains in a strong position to continue with its growth plans in FY 2023.

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