Tabcorp sees group revenue rise 8.8% ahead of demerger roadmap
Australian operator posts increases across lotteries and keno, and wagering and media branches as it navigates Covid-19 restrictions
Tabcorp has posted an 8.8% year-on-year (YoY) revenue rise for the full year 2021 as the operator remains committed to divesting its core business operations by June 2022.
The Australian operator posted a total group revenue of A$5.7bn for the full year to 30 June 2021, up from A$5.2bn in FY20.
Of this total group revenue, Tabcorp’s lotteries and keno arm revenue amounted to A$3.2bn, with digital lottery turnover increasing 27% and keno revenue rising 33.5% YoY.
The operator’s wagering and media branch posted revenue of A$2.3bn representing a 10.3% YoY increase.
Elsewhere, Tabcorp’s gaming services revenue decreased 17.2% YoY to A$183m as Covid-19 restrictions throughout Australia had a severe impact on operations.
Additionally, the operator posted an EBITDA of A$1.1bn, jumping 11.3% YoY from A$995m in FY20.
David Attenborough, Tabcorp CEO, said: “In the face of substantial challenges from the Covid-19 pandemic, our businesses delivered a strong operational performance and double-digit earnings growth.
“Our teams and business partners worked collaboratively to manage the evolving restrictions and our omni-channel business model ensured our customers could continue to enjoy their gambling entertainment experiences,” he added.
Attenborough went on to discuss the operator’s intention to divest its core operating divisions to create two separate ASX-listed businesses.
He said: “A strong lotteries and keno result and the improved performance of the wagering and media business have helped deliver a strong operational result in FY21. Our core businesses are in a strong position to compete on a standalone basis in the future.
“The rationale for the proposed demerger of lotteries and keno is compelling and represents the next phase in Tabcorp’s journey. We are working to ensure that the two standalone businesses are set up for success into the future.
Tabcorp noted the first court hearing and scheme booklet dispatchment relating to the demerger will take place in April 2022, with a demerger scheme meeting and second court hearing pencilled in for May 2022.
Tabcorp aims to complete the demerger by June 2022.