The revenue from the soon-to-be-demerged Lotteries and Keno business reached $3.20bn, with a 10% year-on-year increase. This significant profit result was driven by successful game changes, effective marketing strategies, and a continued focus on enhancing the customer experience and digital innovation, according to Tabcorp Chair Steven Gregg.
The Covid-19 pandemic led to closures of hotels, clubs, and TAB agencies, resulting in inability to trade for extended periods. However, despite these challenges, there was strong revenue growth in the wagering, media, and international lines of business, totaling $2.3bn, as Gregg highlighted.
On the other hand, the gaming services division experienced a 17% decline in revenue, amounting to $183m. Nonetheless, Tabcorp’s earnings before interest, tax, depreciation, and amortization (EBITDA) saw an 11% year-on-year increase, reaching $1.1bn.
In the 2019-20 financial year, Tabcorp reported a net loss of $870m. However, the business returned to profit in the current reporting period, with a net profit after tax of $269m. Furthermore, Tabcorp distributed an impressive $4.2bn in taxes, levies, and payments to state governments through its operations.
Tabcorp also provided further details about its planned demerger of its lottery operations from the rest of the business. After conducting an operational review, the company decided to retain the wagering arm and spin off the Lotteries and Keno business into a separate entity.
The demerger is expected to create two highly successful businesses. Lotteries & KenoCo will become a significant player in the lottery category, benefiting from its infrastructure-like qualities, low capital intensity, and potential for continued digital growth. Wagering & GamingCo will operate well-known wagering and gaming brands such as TAB, Sky Racing, and MAX. It has a strong foundation for organic growth, supported by its domestic scale, diversified assets, and profitable international operations.
Under the new structure, Steven Gregg will serve as Chair of the Lotteries and Keno business, while Sue van der Merwe will take on the role of Chief Executive. Adam Newman will become Chief Financial Officer, and Patrick McGlinchey will be the Chief Legal and Risk Officer and Co-Company Secretary.
In the wagering and gaming business, Bruce Akhurst will assume the role of Chair, and Adam Rytenskild will become Chief Executive following David Attenbrough’s departure. Dan Renshaw, who has extensive experience in wagering, finance, and commercial roles at Tabcorp since 2012, will be the Chief Financial Officer post-demerger, as announced by Tabcorp.
