Australian gambling giant Tabcorp has announced a substantial loss of AU$636.8 million ($417.2 million) and a 5 percent revenue decline in its latest half year report.
The loss is mainly attributed to a significant cash impairment within its wagering and media division, stemming from reduced gambling activity and heightened tax rates.
The company’s overall revenue experienced a 5 percent decline, totaling AU$1.21 billion ($792.79 million), while group earnings witnessed a 14 percent decrease, amounting to AU$170 million ($111.36 million), spotlighting the ongoing challenges faced by the Australian wagering industry.
In a statement issued by the company, its CEO Adam Rytenskild emphasized the company’s ongoing digital transformation, highlighting an uptick in total market share compared to previous periods. He cited favorable outcomes resulting from strategic investments in product innovation, brand development, data analytics, technological advancements, and retail initiatives.
A substantial portion of the reported loss, totaling AU$731.9 million ($479.61 million), can be attributed to a downturn in wagering activity influenced by factors such as inflation, increasing interest rates, and tax hikes in New South Wales.
Revenue from Tabcorp’s primary segment decreased by 4 percent, reaching AU$1.11 billion ($727.49 million), with earnings before interest, tax, depreciation, and amortization (EBITDA) declining by 13 percent to AU$134 million ($87.79 million). The company also revealed a 3.9 percent decline in revenue for January, aligning with a 5.4 percent decrease in wagering turnover.
In order to fund the initial AU$600 million ($393.18 million) betting license for Victoria, Tabcorp plans to utilize its existing debt facility. Additionally, the company has declared an interim dividend of 1 cent per share, demonstrating its commitment to delivering returns to shareholders.
