Tabcorp a ‘fitter’ business focused on unlocking omnichannel value, CEO says

Tabcorp reported a year-on-year increase in revenue and returned to a net profit during its 2025 financial year, with new CEO and Managing Director Gillon McLachlan talking up the company’s position as a “fitter” and “improved” business.

Revenue for the 12 months to 30 June 2025 amounted to AU$2.61 billion (US$1.70 billion), Tabcorp said. This surpassed the previous year by 11.8%, amid double-digit growth within its core wagering and media segments.

The increase follows a more positive year for Tabcorp, with the business having endured a tough FY24. During the previous year, the company fell to a heavy net loss on the back of hefty impairment charges for its wagering and media division, in addition to transformation expenses and costs associated with its new 20-year Victoria licence. Tabcorp’s FY24 also saw previous CEO Adam Rytenskild resign over allegations of using “inappropriate and offensive” language in the workplace.

However, costs for FY25 were significantly lower after the $1.38bn recorded in FY24, allowing the operator to return to a net profit.

McLachlan, who took the helm at Tabcorp in August 2024, oversaw this change in fortunes. He referenced a change in senior leadership – with various other new faces also joining him at the operator – as well as greater cost and capital discipline, a focus on execution and evolved strategy as drivers of growth not just in FY25, but for FY26 and beyond.

“We’ve 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,” he said.

“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.”

Tabcorp now ‘digitally competitive’, targets national tote

On the subject of omnichannel operations, McLachlan described Tabcorp as being “digitally competitive”. This, he said, will support its established retail base and position the group for further growth moving forward.

“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,” he said. “This is the omnichannel offering that will drive growth in the future.”

McLachlan pledged greater integration between all Tabcorp’s assets and said launching a nationwide tote offering remained a key goal for the business.

“[We] will be working collaboratively with industry to try to achieve this,” he added.

Analysing Tabcorp’s performance in FY25, wagering and media generated the majority of its revenue. Division revenue hit $2.44 billion, an increase of 12.8% from the previous year.

Within this area, wagering revenue jumped 15.9% on the back of its new licence in Victoria. This marked the end of an existing joint venture in the state, allowing Tabcorp to draw more revenue from Victorian operations.

Domestic wagering revenue increased 16.7% to $2.04 billion, with $1.07 billion of this from digital activity, despite digital turnover falling by 4.8%. Active users also slipped 0.8% year-on-year during the year.

Cash revenue in Australia was also 17.5% higher, with turnover increasing 2.1%. Meanwhile, international wagering revenue was 9.4% ahead year-on-year at $232.2 million, mainly due to new customers and increased world pools.

As for media, revenue edged up by 2.7% to $370.6 million, reflecting an increase in vision distribution. This was, however, partly offset by the impact of the softer domestic wagering market on turnover-linked revenues.

The group’s other business, integrity services, saw reported revenue decline 0.2% to $175.8 million. However, on an underlying basis – adjusted for the sale of the Max Performance Solutions business in H1 of 2024 – revenue was 7.6% higher.

Better bottom line for Tabcorp

Variable contribution for the group was 16.9% higher at $1.09 billion while operating costs jumped 13.6% to $697.2 million. However, such was the impact of revenue growth that EBITDA before significant items climbed 23.2% to $391.5 million.

Depreciation and amortisation expenses were reduced by 7.9%, leaving $188.8 million in operating profit, a rise of 93.7%. Net interest costs topped $91.5 million and tax expense $51.5 million. As such, net profit before significant items reached $49.5 million, some 76.8% ahead of last year.

In terms of significant items, these had much less impact than in FY24. For 2025, significant items amounted to $12.9 million, compared to the previous year’s impairment charges-driven $1.36 billion.

This meant Tabcorp ended FY25 with a bottom-line net profit of $36.6 million, in contrast to the $1.36 billion loss reported in FY24.

“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,” McLachlan said.

“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.”

Shares in Tabcorp closed up 23.94% at AU$0.88 per share in Sydney Wednesday morning.