Tabcorp Holdings Limited delivered a standout financial performance for FY26, with net profit after tax before significant items surging 43.6 percent to $71.1 million, a result that significantly outpaced the modesty of revenue growth at just 0.8 percent to $2.636 billion. This disparity between top-line and bottom-line growth reveals a company executing with exceptional operational discipline and capturing the benefits of strategic investments made in recent years.
The earnings expansion was underpinned by a combination of cost control and higher profitability on existing revenue. EBITDA climbed 10.3 percent to $431.7 million, with EBITDA margin expanding 140 basis points to 16.4 percent, demonstrating positive operating leverage across the business. EBIT growth of 15.9 percent to $218.7 million further underscored improving underlying profitability. Management’s capital discipline was equally evident, with capex of $140 million aligned to guidance and reflecting targeted investment in strategic priorities. Return on invested capital improved 240 basis points to 12.0 percent, while reported leverage contracted to 1.2 times, well within the guidance band of less than 2.5 times and providing strategic flexibility.
The results reflect strong execution of Tabcorp’s integrated strategy, connecting digital, retail and media assets. Domestic wagering turnover rose 0.9 percent, with sport turnover accelerating 8.3 percent and digital-in-venue turnover climbing 9.1 percent. The FIFA World Cup delivered compelling evidence of the strategy’s merit, with digital active customers increasing 26 percent and retail turnover jumping 57 percent compared to the 2022 tournament. The retail channel continues to anchor the business, with more than 3,300 venues operational representing 97 percent of turnover, now underpinned by a new commercial model and ongoing technology investment including EBT rollouts and TAB LIVE.
Beyond current operations, Tabcorp is reshaping its competitive position through high-impact strategic initiatives. The announcement of a National Tote agreement in July 2026, targeting launch during the Spring Racing Carnival, represents a structural improvement to the racing ecosystem. More significantly, the announced acquisition of BetMakers, targeting completion in 3Q FY27, signals management’s intent to strengthen digital capabilities and product innovation. These moves suggest confidence in accelerating digital growth and margin expansion from the current platform.
The unfranked dividend of 3.0 cents per share and adjusted earnings per share of 5.2 cents reflect the board’s confidence in cash generation and strategic positioning. For investors, the results underscore that Tabcorp has moved into a phase of profitable growth, underpinned by secular trends in digital adoption and demonstrated capital discipline. The key watch items are execution on the National Tote rollout, successful integration of BetMakers, and whether digital growth momentum can be sustained. This announcement has been flagged as price sensitive and material by the ASX.
View the full ASX announcement (PDF)
About Tabcorp Holdings Limited (ASX: TAH)
Tabcorp Holdings Limited is Australia’s leading wagering and lotteries operator, providing betting services on racing, sports, and other events. The company operates The Lott, which manages official lotteries across Australia, and offers wagering products through various channels including digital platforms. It operates primarily in Australia and is a major provider of gambling services to the Australian market.
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