Tabcorp Holdings has returned to profit, as corporate governance highlights the intrinsic value of its lottery and wagering unit that will operate as stand-alone businesses from 2022 onwards.
Publishing its full-year 2020/2021 results (period ending 30 June), Tabcorp declared statutory group profits of AU$269 million (€166m) – reversing its preceding losses of 870 million (€530m).
The ASX gambling group registered growth across all headline metrics, recording combined group revenues of AU$5.6 billion (FY20/21: $5.2bn) and a corporate EBITDA result of AUS $1.1 billion (FY20/21: $995m).
A breakdown of unit performance saw Tabcorp’s Lotteries and Keno subsidiary deliver record revenues of AU$3.2 billion (+9%) and EBITDA result of AU$620 million (+14%).
Tabcorp underlined the proven ‘growth trajectory’ of its Lotteries and Keno unit, which has achieved year-on-year growth since its 2017 enlargement with Tatts Group brands.
Further positive outcomes saw the TAB Wagering-&-Media unit achieve full-year growth for the first time since the Tatts merger, achieving revenues of AU$2.3 billion (+10%) and EBITDA result of $414 million (+11.5%).
TAB’s growth was attributed to an improvement in the unit’s digital and omnichannel offering, which registered a 27% increase in digital turnover and helped TAB retail units emerge from lockdown.
Elsewhere, Tabcorp’s Gaming Services unit continued to lag against COVID-19 lockdown orders imposed by Australian states.
The unit which supplies gaming machines to Australian leisure and hospitality venues saw its revenues decline by 17% to AU$ 183 million, registering a year EBITDA of AU$ 70 million (-16%).
Tabcorp’s financial statement saw the company set a June 2022 deadline for the company to complete the demerger of its lottery and keno units – which will be split as a separate ASX business enterprise.
“The rationale for the proposed demerger of lotteries and keno is compelling and represents the next phase in the new journey of Tabcorp,” said CEO David Attenborough. “We are working to ensure that the standalone businesses are set up for success into the future.”