Sales for Tabcorp dropped by 5% in the first half of 2024

Sales for Tabcorp dropped by 5% in the first half of 2024

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Sales for Tabcorp dropped by 5% in the first half of 2024

Sales for Tabcorp dropped by five percent in the first half of 2024. Here are some  highlights from their trading update report:

Financials

  • Tabcorp reported a Group Statutory Total Loss after tax of AU$636.8 million(this includes a non-cash impairment cost of $731.9 million and other factors benefiting AU$77.5 million).
  • Group revenue decreased by five percent to AU$1.2 billion.
  • Variable Contribution (VC) margin improved from 39.2 percent to 40.1percent.
  • Group earnings before interest, taxes, depreciation, and amortization declined by fourteen percent  to AU$170 million.
  • Group earnings before interest and taxes dropped by thirty-two percent to AU$50 million.
  • The company acquired a new Victorian wagering and betting license.

CEO Adam Rytenskild highlighted the company’s increasing market share trend and operational advancements. The company’s strategy focuses on developing customer competitiveness, leveling competition for fees, taxes, and regulations, and reforming the cost base for efficiency and growth. Tabcorp has seen an upward trend in both total and digital market shares. Investments in retail, product, brand, data, and technology have leveraged its extensive integrated wagering and media network. The company has heavily invested in analytics, artificial intelligence (AI), and technological platforms. With the TAB name present in over 4,000 venues, Tabcorp aims to capitalize on a significant omni-channel opportunity.

Rytenskild also announced that TAB’s profits in Victoria would significantly rise starting August due to the new Victorian Licence. He stated that if the license had been in force for FY23, pro forma earnings before interest, taxes, depreciation, and amortization would have climbed by $140 million. Despite current market conditions, Rytenskild expressed optimism about Tabcorp’s performance improving over time, citing the strength of the Australian wagering market and the company’s improved position for future expansion.

Tabcorp’s Fines

Tabcorp was fined AU$15,000  in the first quarter of 2024 for recruiting people into gambling who didn’t have a TAB betting account. Subsequently, in September, Tabcorp was hit with fifty-four charges by the VGCCC, twenty-seven of which had to do with kids getting into a slot machine area and playing pokies. The maximum fine that the corporation might incur if found guilty is AU$698,997.

There is still no resolution to the September allegations.

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