Tabcorp records growth in 2020-21 ahead of lottery divestment

The revenue was a rise of 8.8% compared to Tabcorp’s full-year 2020 results, which were impacted by the novel coronavirus (Covid-19) pandemic.

A total of $3.20bn was generated from lotteries and keno – the division which the operator intends to divest – up by 9.9% year-on-year. Meanwhile, $2.29bn came from wagering and media, an increase of 10.3%. The remaining $183.0m was brought in by gaming services, a fall of 17.2%.

The company paid $1.61bn in commissions and fees, and $2.15bn in government taxes and levies.

This left a variable contribution of $1.9bn.

Operating expenses totalled $807.0m. Lotteries and keno generated $238.0m of this, while wagering and media accumulated $470.0m. Gaming services expenses made up the remaining $101.0m.

This left earnings before interest, tax, depreciation and amortisation (EBITDA) at $1.10bn, up by 11.2% compared to full-year 2020 results.

Depreciation and amortisation costs came to $383.0m, down slightly from $399.0m year-on-year.

Earnings before interest and tax (EBIT) therefore totaled at $724.0m, a yearly increase of 21.4%. Interest and tax expense, at $155.0m and $170m respectively, left the net profit at $399.0m.

Other expenses, adding up to $130.0m, left the total net profit at $269.0m, a rise of $1.13bn year-on-year following a loss of $861m in 2019-20.

“In the face of substantial challenges from the COVID-19 pandemic, our businesses delivered a strong operational performance and double-digit earnings growth,” said David Attenborough, managing director and CEO of Tabcorp. “Our teams and business partners worked collaboratively to manage the evolving restrictions and our omnichannel business model ensured our customers could continue to enjoy their gambling entertainment experiences.”

“As we work towards the proposed demerger of Lotteries & Keno in 2022, this result demonstrates the resilience, quality and potential of our businesses to compete and grow as standalone companies.”

Tabcorp first announced plans to divest a division – the Wagering and Media division – in February. Entain bid $3.5bn to acquire the division in April, with Apollo and BetMakers bidding $4.00bn in May.

However, in July, Tabcorp decided to divest its Lotteries and Keno division and keep its Wagering and Media division.