Tabcorp reports strong growth in 2H24, details strategic shift

Australia

Nelson Moura

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February 21, 2025

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Tabcorp reports strong growth in 2H24, details strategic shift

Tabcorp Holdings Limited reported solid performance for the second half of 2024, with group revenue rising by 10.1 percent yearly to AU$1.33 billion ($847.7 million) and EBITDA increasing by 12 percent to AU$190.2 million ($121.2 million), compared to the same period the previous year.

The company attributed its growth to the reformed Victorian Wagering and Betting License, improved cost discipline, and enhanced operational efficiency.

Last year Tabcorp was handed a record fine of AU$4.6 million ($3.08 million) by the Victorian Gambling and Casino Control Commission (VGCCC) after an investigation found ‘several instances of non-compliance with its regulatory obligations’.

However, it was still awarded a 20-year wagering and betting licence effective August 2024, something it stated created a ‘level playing field for wagering taxes and fees in Victoria’
and enhanced Tabcorp’s ongoing competitiveness.

Gillon McLachlan, Managing Director and CEO, underlined that “Tabcorp is getting fitter” as it proceeds with “more aggressive cost and capital discipline” and an evolving strategy to unlock value within its “unique asset base.”

He emphasized the company’s focus on operational growth through its omni-channel offering and a commitment to delivering unrivaled wagering entertainment experiences.

Looking ahead, Tabcorp aims to capitalize on its strategic assets to enhance shareholder value while maintaining cost efficiency and operational discipline

Net profit after tax (NPAT) before significant items climbed 25.6 percent to AU$22.1 million ($14.1 million), while statutory NPAT was AU$25.3 million ($16.1 million), a strong turnaround from a net loss of AU$636.8 million ($406.1 million) in the second half of 2023. Earnings per share rose to 1.1 cents from a loss of 28.2 cents the previous year. An interim dividend of 1.0 cent per share, unfranked, was announced.

Tabcorp’s Wagering & Media revenue grew by 11.3 percent, driven by a notable 18.2 percent increase in cash wagering net revenue. Integrity Services also showed strong growth, with EBITDA up 18.4 percent supported by a 9.7 percent rise in revenue.

Strategic Initiatives and Cost Management

The company has implemented a new leadership structure and introduced cost-saving measures that increased its targeted operational expense savings for FY25 to AU$30 million ($19.1 million), up from an earlier target of AU$20 million ($12.7 million).

Actions taken to reduce operating costs include embedding strong cost discipline, employee headcount reductions, and discretionary spending reductions. A review of all capital expenditure (capex) and re-prioritisation of projects in line with an evolved strategy was undertaken.

Capital expenditure is expected to be between AU$110 million ($70.2 million) and AU$120 million ($76.6 million), approximately AU$25 million ($15.9 million) lower than previous guidance.

Tabcorp announced an evolved strategy aimed at leveraging its unique assets, including a stronger focus on digital competitiveness and integrating its retail and media channels for a seamless omni-channel experience.

The company plans to innovate in the tote market, explore a single national tote, and develop a standalone media entertainment business to expand its reach globally.

Strong business performance and robust cash flow have kept Aristocrat’s leverage below its target net debt-to-EBITDA ratio, allowing the company to continue investing in growth initiatives—such as strategic mergers and acquisitions (M&A)—while also returning excess cash to shareholders through dividends and the new buy-back program.

The filing also notes that the buy-back will be conducted opportunistically to capitalize on favorable market conditions.

In addition to the share buy-back, Aristocrat intends to allocate part of the proceeds from the Plarium sale to repay its $250 million Term Loan B debt facility. The repayment is expected to be completed by March 2025, well ahead of the facility’s May 2029 maturity.

Aristocrat’s CEO and Managing Director, Trevor Croker, expressed confidence in the company’s financial position, stating: “Aristocrat’s robust balance sheet and strong cash flow generation enable us to reinvest in the business and continue returning cash to shareholders via dividends and share buy-backs. Upon completion of the program announced today, Aristocrat will have returned AU$2.6 billion ($1.65 billion) to shareholders through share buy-backs. We will actively assess growth opportunities, including strategic acquisitions and investment in organic initiatives, on an ongoing basis.”

Lachlan Fitt latest executive to leave Entain Australia amidst AML probe

Australia

AGBrief Editorial

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February 21, 2025

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Lachlan Fitt latest executive to leave Entain Australia amidst AML probe

The deputy chief executive officer of Entain Australia Lachlan Fitt has resigned, marking the third executive departure from the company amongst an ongoing money laundering case.

According to The Guardian, Lachlan Fitt, who served as the chief financial officer of Entain Australia since 2018 joins former CEO Gavin Isaacs and the managing director of Entain NZ – Cameron Rodger, in tendering his resignation from the gambling group.

Entain Australia is currently undergoing a probe by Australia’s financial watchdog AUSTRAC over “serious and systemic non-compliance with anti-money laundering and counter-terrorism financing laws”.

The group is accused of accepting millions in bets from 17 high-risk clients with “suspected criminal profiles and associations” despite being aware of the risks.

The group notes that the civil proceedings may result in a penalty “which could be potentially material”.

The group notes that it is cooperating with AUSTRAC and working on its AML/CTF compliance.

According to the group’s Chief Executive Officer, Jason Walbridge, “100 percent carded play represents a step change in host responsibility and customer care. […] All customers will need to use a SkyCity card that contains their identity and other important information to play anywhere in our casinos. This will enable them to know how long they’ve played, how much they’ve spent, and when to take a break.”

The group saw a stark drop in net profit for 2H24 due to lower visitor spend, with Walbridge noting that “we expect the challenging economic conditions to continue to impact discretionary spend into the 2025 calendar year”.

The group anticipates that FY25 underlying group EBITDA will “likely fall within a range of NZ$225 million ($130 million) to NZ$245 million ($141.3 million).

“We are excited to strengthen and expand our partnership with Pragmatic Play,” said Jason McCulloch, Vice President of iGaming at Galaxy Gaming. “Their exceptional Live and RNG casino experiences, enhanced by our renowned side bets, set a high standard in the industry. This five-year extension reflects the strength of our collaboration while advancing our long-term strategy of delivering premium table game content to operators and their players worldwide.”

Irina Cornides, Chief Operating Officer at Pragmatic Play, added: “Our partnership with Galaxy Gaming has been a successful one to date, and this new agreement will enable us to further enhance select products in Pragmatic Play’s award-winning live portfolio with their popular side bets.”

Soft2Bet’s MEGA workshop, presented by Nicolas Campano, Sales Director LATAM, will provide in-depth insights into how MEGA enhances the player retention loop through motivational engineering and personalized experiences. Users play and bet for real money, collecting additional loyalty points. They spend these points to play bonus games (e.g. Bonus Crab, City Builder, etc) to get extra rewards, including free spins, free bets, bonus money, and real money, which they utilize to play more. This hands-on session will feature live demonstrations, showcasing how the solution boosts engagement and drives business performance for operators in regulated markets.

Alongside MEGA, Soft2Bet will present powerful turnkey solutions with new updates and strong PAM, front-end and sportsbook solutions tailored for LATAM operators. With extensive experience in localization and personalization, Soft2Bet has successfully launched B2C brands across multiple highly competitive markets. As one of Soft2Bet’s leading brands, Campobet MX, officially launched in Q4 of 2024, is a prime example of how the company’s platform delivers high-performance, localized gaming experiences for operators looking to expand in the region. Soft2Bet’s products personalize the casino and sports betting experience, delivering an engaging user experience.

“Through this exclusive workshop, we aim to highlight how our API-based, standalone product can enhance the player experience and drive retention in the rapidly growing LATAM market. We look forward to connecting with industry professionals and showcasing the power of innovation in iGaming,” said Campano.

Soft2Bet invites all SBC Summit Rio attendees to Stand B960, where operators can meet with the team, explore Soft2Bet’s full suite of products, and learn more about the company’s strategic growth plans for the Latin American market.

MGM’s restaurants partner with Air Macau to enhance in-flight dining experience

Macau

AGBrief Editorial

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February 20, 2025

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MGM’s restaurants partner with Air Macau to enhance in-flight dining experience

Macau gaming operator MGM continues its commitment to enhancing Macau’s appeal as a leading travel destination, this time collaborating with Air Macau to elevate the airline’s in-flight dining experience.

This partnership highlights MGM’s culinary expertise from two of its acclaimed restaurants: “Black Pearl One-Diamond Restaurant” Imperial Court featuring Lingnan cuisine and the French brasserie Aux Beaux Arts.

MGM’s professional culinary team from these two signature restaurants has provided comprehensive support to Air Macau’s catering team for almost a year, offering technical guidance on menu design, recipe development, and culinary training. The result is a sophisticated new menu for business-class passengers on key Asian routes with Air Macau, featuring an extensive selection of Chinese and Western dishes and desserts, launching on March 1.

Hubert Wang, President & COO of MGM China Holdings Limited, said, “This partnership serves as a key gateway connecting Macau with international visitors. Through Air Macau’s extensive route network, we can showcase our city’s rich gastronomic culture, allowing travelers to experience Macau’s culinary excellence even at sky-high. This initiative strengthens Macau’s position as a ‘Creative City of Gastronomy’ while advancing the city’s status as a ‘World Center of Tourism and Leisure’. By weaving together gastronomy and tourism, we are promoting our city’s cultural diversity and innovation, alluring more visitors to explore Macau.”

Starting March 1, business-class passengers on flights to over 10 major destinations—including Beijing, Shanghai, Hangzhou, Chengdu, Tokyo, Osaka, Seoul and more—will enjoy specially curated menus for breakfast, lunch, dinner, and afternoon tea. Drawing on MGM’s expertise in both Chinese and Western cuisines, this initiative enables passengers to discover Macau’s hospitality and culinary mastery during their journey, reinforcing the city’s reputation as a “Creative City of Gastronomy”.

Landing three book scatters triggers the bonus game with eight free spins initially awarded. Before the feature begins, a random symbol is selected as the mystery symbol, determining whether the bonus game begins at the Bronze, Silver, Gold, or Super level. A gamble option is also available for the chance to upgrade to a higher-paying mystery symbol.

During free spins, full mystery symbols always expand to cover the entire reel and additional scatters are collected in a meter. After every four scatters collected, the bonus game level is upgraded, a new mystery symbol is selected at random, and two extra free spins are awarded.

Super level free spins can be triggered via upgrades during the feature or by landing at least one super scatter in a bonus-triggering spin in the base game. In Super level free spins, the mystery symbol is always the money symbol, meaning players have an increased chance of hitting the respin feature.

John Hunter and Galileo’s Secrets is the latest addition to Pragmatic Play’s award-winning slots portfolio, following the release of Wild Wildebeest Wins, Bigger Bass Splash, and Ancient Island Megaways™.

Pragmatic Play launches Aztec Adventure in Ancient Island Megaways

Irina Cornides, Chief Operating Officer at Pragmatic Play, said: “John Hunter is one of Pragmatic Play’s most popular game series. This latest adventure features upgrading mystery symbols that enhance the bonus round, offering wins of up to 5,000x.”

Tabcorp reports strong growth in 2H24, details strategic shift

Tabcorp Holdings Limited reported solid performance for the second half of 2024, with group revenue rising by 10.1 percent yearly to AU$1.33 billion ($847.7 million) and EBITDA increasing by 12 percent to AU$190.2 million ($121.2 million), compared to the same period the previous year.

Strategic Initiatives and Cost Management

Table of Contents

Lachlan Fitt latest executive to leave Entain Australia amidst AML probe

The deputy chief executive officer of Entain Australia Lachlan Fitt has resigned, marking the third executive departure from the company amongst an ongoing money laundering case.

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Jumbo sees 10.5% drop in revenue in 2H24, due to ‘subdued jackpot environment’

Australia-based Jumbo Interactive has announced a 10.5 percent drop in revenue from operations in the second half of 2024, totaling AU$66.13 million ($42.34 million).

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SkyCity to roll out carded play in NZ in July, SkyCity Adelaide to follow in 2026

New Zealand and Australian gaming operator SkyCity has announced that it will be rolling out mandatory carded play across its properties in New Zealand in July of this year, and is planning to introduce carded play at SkyCity Adelaide in 2026.

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Macau January visitation up by 27%, topping 3.64 million

Macau saw a strong increase in visitor arrivals in January, with over 3.64 million entering the gaming hub, a yearly rise of 27.4 percent.

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Galaxy Gaming and Pragmatic Play extend 5-year licensing agreement for table game content

Galaxy Gaming, a developer and distributor of innovative games, has announced an agreement in principle with leading content provider Pragmatic Play to extend their strategic licensing agreement for an additional five years.

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Soft2Bet joins SBC Summit Rio 2025, highlighting MEGA and enhanced portfolio

Soft2Bet, a leading global iGaming platform provider, has announced its participation in SBC Summit Rio 2025, taking place on 26-27 February at Riocentro, Rio de Janeiro, Brazil.

MGM’s restaurants partner with Air Macau to enhance in-flight dining experience

Macau gaming operator MGM continues its commitment to enhancing Macau’s appeal as a leading travel destination, this time collaborating with Air Macau to elevate the airline’s in-flight dining experience.

Table of Contents

Pragmatic Play ventures into space with John Hunter and Galileo’s Secrets

Pragmatic Play, a leading content supplier to the iGaming industry, has released John Hunter and Galileo’s Secrets, the latest addition to its popular John Hunter series that combines mystery symbols with money respins to deliver 5,000x win potential.

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ENQUIRIES & SUBSCRIPTIONS

CONTACTS

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Tabcorp Holdings Limited reported solid performance for the second half of 2024, with group revenue rising by 10.1 percent yearly to AU$1.33 billion ($847.7 million) and EBITDA increasing by 12 percent to AU$190.2 million ($121.2 million), compared to the same period the previous year.

Strategic Initiatives and Cost Management

Table of Contents

Aristocrat Leisure Limited has unveiled an on-market share buy-back program valued at up to AU$750 million ($477 million), marking the latest step in its ongoing capital management strategy.

The deputy chief executive officer of Entain Australia Lachlan Fitt has resigned, marking the third executive departure from the company amongst an ongoing money laundering case.

Table of Contents

Australia-based Jumbo Interactive has announced a 10.5 percent drop in revenue from operations in the second half of 2024, totaling AU$66.13 million ($42.34 million).

Table of Contents

New Zealand and Australian gaming operator SkyCity has announced that it will be rolling out mandatory carded play across its properties in New Zealand in July of this year, and is planning to introduce carded play at SkyCity Adelaide in 2026.

Table of Contents

Macau saw a strong increase in visitor arrivals in January, with over 3.64 million entering the gaming hub, a yearly rise of 27.4 percent.

Table of Contents

Galaxy Gaming, a developer and distributor of innovative games, has announced an agreement in principle with leading content provider Pragmatic Play to extend their strategic licensing agreement for an additional five years.

Table of Contents

Soft2Bet, a leading global iGaming platform provider, has announced its participation in SBC Summit Rio 2025, taking place on 26-27 February at Riocentro, Rio de Janeiro, Brazil.

Macau gaming operator MGM continues its commitment to enhancing Macau’s appeal as a leading travel destination, this time collaborating with Air Macau to elevate the airline’s in-flight dining experience.

Table of Contents

Pragmatic Play, a leading content supplier to the iGaming industry, has released John Hunter and Galileo’s Secrets, the latest addition to its popular John Hunter series that combines mystery symbols with money respins to deliver 5,000x win potential.

Table of Contents

ENQUIRIES & SUBSCRIPTIONS

CONTACTS