After reporting declining revenue and EBITDA in the busy 2022 financial year, Tabcorp aims for online and digital expansion as it changes its strategy.
Australia’s largest gambling operator Tabcorp has recently published its financial analysis covering the 2022 fiscal year, from the 1st of July 2021 to the end of June this year.
Before taking a look at the headline figures, it’s important to mention the company’s biggest undertaking this year, the demerger of their lotteries and Keno business. On the 23rd of May this year The Lottery Corporation Ltd. was spun off from the holding firm and is now going to operate as a separate entity. The demerger will free up both companies’ resources and talent and let them specialize in their own sectors of the industry.
The gambling operator’s shareholders were given a share of TLC for every Tabcorp share in possession as of the 25th of May. After more than one and a half decade of being a part of the group, TLC’s market capitalization jumped to about 10 billion Australian dollars, demonstrating an enormous increase of over 24 times compared to the last time the corporation was listed on the Australian Securities Exchange in September of 2006.
As a result the organization’s numbers are going to look a bit lower, as TLC’s earnings are excluded from the main figures, although they are marked in the document as “discontinued operations” and are also part of the total earnings section that will be explored below.
Focusing on the key statistics generated from continuing operations, the group experienced a slight downturn of around 4.5% in revenue, as it went from nearly 2.5 billion Australian dollars to a bit over 2.37 billion. EBITDA saw a larger decrease, as it went from 487 million Australian dollars last financial year to 382 million Australian dollars.
Furthermore, as noted before, the corporation also published some results that included 11 months of operations with TLC. The main observation is a massive jump in statutory net profit after taxes, which went up from 269 million Australian dollars last year to over 6.7 billion Australian dollars this year, likely due to eased pandemic restrictions. The total revenue figure was recorded at a touch over 5.6 billion dollars, which represented a slightly smaller drop of 1.4% compared to the 4.5% mentioned in the main numbers.
Continuing with the numbers, the business experienced a 10% reduction in dividends paid per share, as it is now sitting at 13 cents per share instead of the 14.5 cents registered in the prior fiscal year. Additionally, the firm stated a net debt figure of 20 million Australian dollars which is pretty manageable for a company of that size.
At the end of the report the organization has posted a few metrics regarding their digital wagering and gaming market. The group noted a digital revenue market share of almost 25% as well as over 783 thousand digital customers.
The company has its sights set on the expansion of its digital subsidiary TAB, as it goes towards a complete transformation. They will focus fully on the digital/online vertical of the market as they now will not have to manage a lottery and Keno business alongside it.
Lastly, the chief executive of the firm stated that they are happy with the accomplishments achieved this financial year and are looking forward to obtaining their long-term strategic goals in the future.