Tabcorp’s wagering turnover drops close to 1%

Tabcorp, has reported a 6.1 percent decline in revenue during the first quarter of the 2024 financial year. This decrease can be attributed to a 12.7 percent drop in gaming services revenue, primarily due to the sale of eBet and reduced contracted Electronic Gaming Machines (EGMs). The announcement to the ASX outlined these figures.

Wagering turnover also experienced a 0.9 percent decrease, leading to a 5.4 percent decline in wagering and media revenue. On the other hand, there was a 1 percent increase in digital wagering turnover, but digital wagering revenue saw a 3.9 percent decrease.

Tabcorp’s Chief Executive, Adam Rytenskild, commented on these results, saying, “Given the softer trading environment, I’m pleased we grew digital wagering turnover, which highlights that customers are responding to our new digital customer offering.”

“Given the softer trading environment, I’m pleased we grew digital wagering turnover, which highlights that customers are responding to our new digital customer offering. We continue to be relentless in the way we execute our TAB25 strategy and remain focused on making the right decisions for the long-term success of the business.

As we head into the Spring Carnival and the start of the NBA season, I’m excited to have released our 13th update to the TAB App since it was launched last Spring.

We’re in the midst of implementing significant change as a company and industry. Our strategy is on track as level playing field and licence reforms commence, our customer reputation grows, and cost base reduces. Our transformation continues at pace and I am confident we will deliver the value laid out in our TAB25 Strategy.”

The drop in revenue looks to have been caused by a slow down in betting from TAB shops across the country as more and more people turn online to bet, although with the online betting industry seeing a saturation of small bookmakers being launched it is likely to impact big betting operators such as the TAB in coming quarters.

• Group Revenue down 6.1%.

• Wagering Turnover down 0.9% and Wagering & Media Revenue down 5.4%.

• Digital Wagering Turnover up 1.0% and Digital Wagering Revenue down 3.9%.

• Gaming Services Revenue down 12.7%, due to eBet sale and lower contracted EGMs.

There are now close to 100 licensed bookmakers in Australia with this number tipped to increase in the coming year. (See below.)

Jake Howard from Combet predicts there will be 150 bookmakers operating in Australia by the end of next year. View the full list of online bookmakers here.