Tabcorp shares soar by more than a fifth as revenue jumps 12% for FY25

Tabcorp reported revenue increase of 11.8% year on year (YoY) for full-year 2025, with the operator pointing to the reform of the Victorian licence last August as a key factor behind the growth.

Revenue stood at A$2.6bn (£1.25bn), up from A$2.3m the previous year. The firm’s shares are up more than 23% on the back of the report to A$0.88.

Group EBITDA increased 23% YoY to A$391.5m, as group EBIT almost doubled from A$97.4m in full-year 2024 to A$188.7m a year later.

The Australian operator’s group wagering and media revenue grew 13% YoY to A$2.4bn, on the back of the new Victorian licence which came into play on 16 August 2024, giving Tabcorp exclusive rights to offer wagering and betting in Victoria for the next two decades.

Underlying EBITDA also increased 26% YoY to A$391.5m. Underlying EBIT spiked over 100% YoY, from A$90.3m to A$188.7m, for the period ending 30 June 2025.

International wagering revenue grew 9.4% YoY thanks to new customers and increased world pools, while media revenue also saw a 2.7% YoY increase due to growth in vision distribution.

However, the company noted that this “was partly offset by the impact of the softer domestic wagering market on turnover-linked revenues”.

Management added that full-year operational expenditure savings had hit A$39m, above the previous A$30m target. Within those savings, around 250 roles were cut.

Key highlights for the year included the appointments of chief wagering officer Michael Fitzsimons and chief commercial and media officer Jarrod Villani, which Tabcorp said increased its wagering and media capability.

Commenting on the group’s full-year 2025 finances, managing director and CEO Gillon McLachlan remarked: “Today’s pleasing results are the outcome of creating a fitter company.

“We have increased our wagering and media capability at the leadership level, developed a simpler, more cost-effective operating model and are operating with a bias for action and increased accountability.

“We have an evolved strategy with a broader focus on unlocking the value that lies within our unique asset base. We have commenced executing the strategy, including the creation of a structurally profitable retail business that will, in time, increase patronage to pubs and clubs with a true omnichannel offering.”

McLachlan, who joined the operator last August, also pointed to its omnichannel offering and the business being “fitter” than before as reasons behind the upward trajectory of the firm.

He added: “The improvement in earnings also reflects our refreshed customer offering as we activate unique offers such as the TAB Takeover and TAB Time that bring to life our omnichannel assets, and the seamless commencement of the new Victorian licence, which is delivering earnings in line with expectations given soft trading conditions.

“Now that we are digitally competitive our focus has broadened to using our entire asset base to create the ultimate sports and racing entertainment experience. This is the omnichannel offering that will drive growth in the future.

“When I joined Tabcorp I said I was drawn to the value that can be unlocked within our unique set of strategic assets, but to do that we needed to get fit.

“Today we are a fitter business. A business with an improved cadence, a simpler, more cost-effective operating model and an improved culture of cost and capital discipline. We have a clear strategy and clear lines of accountability that are allowing us to execute on a bolder strategic plan.”