This strategy has resulted in strong results for the full year ended on June 30, 2023, the company’s FY23, which resulted in AU$66.5 million profit across the group. This news comes at a time when sports betting regulation is about to become tighter in Australia, where the company is based.
Tabcorp Swings from Loss to Profit in FY23
Regardless, net profit after tax raked in AU$66.5 million which was ahead of the AU$118.4 million that the company posted in losses a year earlier in FY22. Group revenue was also up at AU$2.43 billion, or up 2% year-over-year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at AU$391 million, another increase of 8% for the company. Operating expenses actually shrank by 1% to AU$618 million. Tabcorp managing director and CEO Adam Rytenskild has welcomed the news and outlined the significance these results held for the company.
“Today’s earnings and record active customers highlight the successful completion of the foundation year in the TAB25 transformation strategy,” Rytenskild said. He hailed the group’s growth in total revenue, which was underpinned by the company’s wagering ecosystem and came despite certain market challenges.
Digital revenue share remained fairly stable, which was once again owing to the company’s new products. Rytenskild added:
The outstanding performance in Queensland highlights the confidence we have in our growth plans. Queensland TAB has outperformed the Group TAB results on almost every metric since it commenced competing on a level playing field with our competitors.
Tabcorp managing director and CEO Adam Rytenskild
TAB Rebranding in the Works
The executive spoke highly of the launch of the dedicated TAB App which has been well made and delivered on the experience that business and customers had expected, helping drive performance and underpin the overall wagering division.
Rytenskild also spoke about TAB’s intention to rebrand to what he described as a “younger” and “fresher” brand, a bid on the company’s behalf to strike home with younger audiences at a time when most sports bettors are aging and sportsbooks are trying to connect with younger audiences by any means necessary.
All of this comes at the same time when TAB is determined to continue investing in a sustainable long-term strategy that allows it to increase its local presence and consolidate its financial results moving forward.