Tabcorp reports 4.3% dip in revenue for fiscal year 2022
Wagering and media division dips as MD renumeration package hits A$3.4m for full-year
Tabcorp has reported a slight 4.3% drop in revenue for full-year 2022 (FY22) as the Australian firm adjusts to life following the demerger of its former lotteries and keno business.
The operator recorded FY22 revenue of A$2.4bn (£1.4bn), decreasing from the A$2.5bn recorded in FY21.
The group’s wagering and media division saw revenue fall 5.1% to A$2.2bn, with EBITDA dropping 26.1% to A$306m from A$414.1m.
The drop-off was attributed to the heavy impact of Covid-19-related closures in its largest markets of New South Wales and Victoria.
There were positives in the FY22 for Tabcorp as its gaming services division saw revenue increase 5.3% from $183.2m to $193m, with EBITDA increasing 6.4% to $75.2m.
Alongside the drop in revenue, the group reported a net loss before income tax and finance costs of A$75.1m, a massive fall-off from the A$66.9m profit posted last year.
Total group EBITDA also decreased in FY22, falling from A$487.2m to A$381.6m.
It was a busy year for the Australian firm, as it successfully implemented the demerger of its former lotteries and keno business, which is now operated by The Lottery Corporation Limited.
The operator is also set to launch the new TAB app in September.
On the back of the results announcement, Adam Rytenskild, MD and CEO of Tabcorp, spoke on the firm’s performance and outlook for 2023.
He said: “FY22 results reflect a disrupted period – it’s a line in the sand and the end of old Tabcorp. We’re resetting our business and culture to focus only on customers and growth.
“I can’t wait to roll out our new TAB app. We’re gearing up for an exciting spring and to follow that with a terrific customer experience for the FIFA World Cup.
“FY22 was a disrupted year with first half Covid lockdowns in our two largest markets, a record number of race meetings washed out and the priority challenges of a company pre-demerger.
“We are seeing stabilisation in our digital market share, and our total focus is now on executing our strategy to transform and pursue growth. We feel the next results, reflecting this half, will be a good test for the improvements we are making,” he added.
Rytenskild took home A$3.4m renumeration for FY22, up from the A$1.7m he received in FY21.
At the time of writing, Melbourne-listed Tabcorp’s share price climbed 4.35% to A$0.96.