Australia’s Tabcorp Holdings Records Huge Profit After Demerger

Tabcorp Holdings, the well-known Australian lottery and betting company, has released its results for the 2022 financial year and the numbers show a greatly improved profit after the operator demerged its lottery business.

For the twelve-month period ended on June 30, 2022, Tabcorp Holdings Limited reported a net profit of 6.7 billion dollars, a vast increase from the 269 million in profit that were recorded in the 2021 fiscal year.

However, 6.5 billion dollars of that profit was garnered from the demerger of the Group’s former Lotteries and Keno business that is now operated by The Lottery Corporation Limited, a new company that is traded on the Australian Securities Exchange.

The financial report which excludes the demerged lottery business shows revenue of 2.37 billion Australian dollars, a figure which represents a decrease of 4.3 percent compared to the 2.48 billion dollars that were generated in the previous year.

The wagering and media business is the core of the continuing operations, generating 2.18 billion Australian dollars in revenue during the 2022 financial year. However, that figure represents a decrease of 5.1 percent compared to the previous year, mainly due to retail closures in the first half as a result of restrictions related to the Covid-19 pandemic.

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Revenue from wagering was most impacted by coronavirus restrictions, falling 11.7 percent year-on-year to 1.73 billion Australian dollars. Moreover, several events got canceled due to the impact of wet weather, and that resulted in less wagering revenue.

However, media and international revenue recorded a significant increase of 33.2 percent compared to the previous year, amounting to 454.4 million Australian dollars. The good results were mainly due to the company’s Sky Media business continuing to expand its distribution of racing and sport content both through digital and retail channels.

As for the company’s gaming services, revenue from this sector increased 5.3 percent to 192.9 million Australian dollars in the 2022 fiscal year. The company also increased its spending overall, but employment expenses decreased by 6.5 percent and other expenses were also cut by 9.3 percent.

Overall, the company (without the lottery business) recorded a pre-tax loss of 136.2 million Australian dollars. That is slightly more than the 100.7 million dollars that were lost in the 2021 financial year, but earnings before interest, tax, depreciation and amortization (EBITDA) fell 21.7 percent year-on-year from $487.2m to $381.6m.

SOURCE: . Asia Gaming Brief. August 25, 2022.