Tabcorp boosted by lotteries

Investors sent the shares of Tabcorp 4% higher on Thursday, after the gambling giant said it achieved a record Lotteries result and despite significant Covid impacts on its other businesses.

Tabcorp declared its group revenue was up 2.2%, while EBITDA was down 5.5%, as the Wagering & Media business was significantly impacted by the retail lockdowns imposed in NSW and Victoria However, its performance across all channels improved once restrictions were lifted.

Tabcorp noted that the Wagering & Media business, and its digital performance, are much stronger when venues are open and customers can participate fully in the “omni-channel experience”, which is a key strategic point of difference for the company.

Lotteries & Keno revenues were $1,784m, up 10.9% on the pcp, and EBITDA was $358m, up 15.1%. The Lotteries retail network was not materially impacted by COVID-19 trading restrictions; however, Keno was adversely impacted by venue closures.

Wagering & Media revenues were $1,073m, down 9.8%, and EBITDA was $148m, down 34.8%. The results were heavily impacted by retail closures in the largest market, NSW, which impacted wagering and media subscription revenues.

Gaming Services revenues were $78m, up 6.8% and EBITDA was $21m, down 4.5%. Revenues were up on the pcp due to a reduction in lost days in Victoria compared to the pcp and the relatively small exposure to the NSW venue closures.

Tabcorp Managing Director and CEO David Attenborough said: “The record result from the Lotteries & Keno business again showcased the broad appeal of the business’ much-loved products and brands, and the success of its omni-channel strategy. As we have throughout the pandemic, our focus was on managing the operational and financial impacts on our businesses.”