Tabcorp ekes out growth despite favoured results and racing turnover slump

Tabcorp has weathered a freak run of punter-friendly results over the spring carnival to show a slight year-on-year increase in half-yearly revenue of $1.344 billion and better than expected EBITDA of $217.4 million across the first six months of 2025/2026.

The publicly listed wagering giant’s progress in the first half of the second financial year under the guidance of chief executive Gillon McLachlan was one of consistency rather than spectacular growth, with a 0.3 per cent increase in wagering turnover, driven by a growth in sports betting.

The overall revenue Tabcorp derived from wagering was up 1 per cent year on year, but excluding the impact of the Victorian licence, which began in mid-2024, revenue from wagering fell 2.5 per cent.

That was attributable to what was termed “below average gross yields” due to the much-publicised punter-friendly results through September, October and early November.

Tabcorp continued to reduce costs, with an underlying reduction of 3.7 per cent, including a 1.8 per cent decrease in the operating expenses in its wagering and media business.

However, in a sign of continued headwinds for the racing industry, domestic racing turnover at Tabcorp fell by 1.2 per cent to $5.73 billion across the first half, while sports turnover grew 6.9 per cent to $1.44 billion.

The split of racing as a share of overall wagering turnover has fallen from 81.1 per cent last year to 79.9 per cent this year. That figure was 83.3 per cent in the first half of the 2023 financial year.  

Tabcorp’s digital revenue fell slightly, driven partly by a 4.4 per cent drop off in active users to 766,000. But both cash turnover (up 1.2 per cent) and cash revenue (up 2.8 per cent) grew compared to the same time last year.

International wagering revenue also grew by 6.6 per cent, attributable to new customers.

“Our 1H26 results highlight that we are a more consistent company, with greater capability,” McLachlan said.

“We’re executing on our game plan while delivering ongoing cost and capital discipline.”

McLachlan said it was pleasing to record growth during a period of genuinely tough trading conditions for the industry, exacerbated by a run of favoured results that also impacted Tabcorp’s rivals.

“There’s greater depth in our business. I’m proud we’ve delivered double-digit earnings growth in a half where wagering operators were impacted by a run of low yields during the footy finals and spring racing carnival,” he said.

“We have been able to absorb this through strong execution by the team, particularly on the cost side, and through the diversity in our business.”

“Through TAB and SKY, our digital, retail and media assets are more closely connected, creating a genuine omnichannel experience for our customers and I expect that to evolve further in the second half of the year. TAB Takeover, TAB Time, Mega Pot and Miss By One products are examples of the differentiation we are creating.”

Tabcorp remains on track to deliver a national tote by the end of the financial year and will launch a new retail model on July 1.

It will also look to capitalise on its in-play opportunity after a key national regulator cleared the way for it to offer in-app live betting in venues across Australia.

“There’s more to do and we’re not where we want to be yet, but we have made significant progress in the first half, and we will remain relentless in executing on our strategy in the second half and beyond,” McLachlan said.

Tabcorp shares opened 17 per cent higher on Wednesday, jumping to $1.