Tabcorp Holdings has reported improved group trading, as the company’s lottery and wagering units hold-up against continued COVID-19 challenges.
Publishing its 2020/2021 interim results (period ending 31 December), Tabcorp records a 1.5% decline in group revenues to AUS $2.87 billion.
Tabcorp underscored its slight revenue decrease as a ‘positive outcome’ given the maintained growth of its ‘lottery and keno’ division contributing +2% revenue increase to AUS $1.61 bn – combined with the improved results of its TAB wagering unit recording a +1% revenue uplift to AUS $1.19 billion.
Lottery and wagering revenue growth would offset severe impacts to Tabcorp’s ‘Gaming Services’ unit, which experienced a 53% slump in revenues to AUS $66 million (2019/2020 AUS $150m) hindered by hotel and club venue closures across Australia.
Accounting for Gaming Services impacts and final merger integration costs, Tabcorp reports a period EBITDA decline of 6.2% to AUS 560 million (2019/2020 AUS $597m).
Navigating covid headwinds, the ASX gambling group continues to operate its optimisation programme in which the company projects that it will secure AUS $95 million in group-wide EBITDA savings by end of year trading.
Updating investors, Tabcorp highlighted strong prospects for its lottery and keno division, which will significantly expand its distribution network across South Australia within the coming months.
Meanwhile, its wagering division will continue to focus on optimising its ‘omnichannel approach’ and platform infrastructure, as TAB units reported a strong emergence from lockdown.
Tabcorp’s improved trading results would see the firm declare net profits after tax of AUS $207 million, down 3% on 2019/2020 results of AUS $214 million.
“We are experiencing a strong recovery following the recent market challenges,” said Tabcorp Group CEO David Attenborough.
“The COVID-19 pandemic continued to impact Tabcorp’s group earnings in 1H21, with the retail closures and restrictions, especially in Victoria, having a material impact.
“However, we are pleased with the way our teams and partners responded to the substantial operational challenges the pandemic presented. COVID-19 has clearly demonstrated the importance of serving customers with a seamless, multi-channel experience. Investments made to modernize our digital offering in recent years drove significant benefits.”