Tabcorp (ASX: TAH) Lifts FY26 Profit as Margins Expand

Tabcorp Holdings lifted full-year earnings at a much faster rate than revenue, as cost controls and retail changes widened margins.

Group revenue rose 0.8% to $2.64 billion for the year ended June 30, 2026. EBITDA before significant items increased 10.3% to $431.7 million.

Net profit after tax before significant items climbed 43.6% to $71.1 million. Statutory net profit increased 26.5% to $46.3 million, while adjusted earnings per share rose 33.3% to 5.2 cents.

Margin Expansion Drives the Result

Underlying operating costs declined 0.8% on a like-for-like basis. This helped lift Tabcorp’s EBITDA margin by 140 basis points to 16.4%.

The widening margin is central to the result because revenue growth remained modest. It shows earnings benefited from cost discipline and the first phase of Tabcorp’s new retail commercial model. A full-year contribution from the reformed Victorian wagering licence also supported performance.

Managing Director and Chief Executive Officer Gillon McLachlan said: “Midway through our turnaround journey, we’re executing on the plan, continuing to exercise cost and capital discipline and the Company is delivering earnings growth.”

Domestic wagering turnover increased 0.9%, including an 8.3% rise in sports turnover. Digital-in-venue turnover grew 9.1%.

However, international wagering revenue declined 3.7%. Tabcorp attributed that fall mainly to softer second-half trading in Hong Kong.

Divisions Deliver Higher Earnings

Wagering and Media revenue increased 0.7% to $2.45 billion. The division’s EBITDA rose 9.9% to $361.8 million, with its margin reaching 14.7%.

Media revenue advanced 1.9% to $377.8 million. Strong international export performance outweighed softer domestic digital revenue.

Integrity Services also improved its contribution. Revenue increased 3.3% to $181.6 million, while EBITDA climbed 12% to $69.9 million.

The division benefited from more project work, inflation-linked fee increases and additional monitored electronic gaming machines. Its EBITDA margin expanded by 300 basis points to 38.5%.

Balance Sheet and Dividend

Net debt stood at $533 million at June 30. Reported leverage declined to 1.2 times, below Tabcorp’s target ceiling of 2.5 times through the cycle.

Liquidity reached $1.16 billion after Tabcorp diversified funding and extended its syndicated loan maturities. The weighted average maturity of drawn debt facilities increased to 4.9 years.

Tabcorp declared an unfranked final dividend of 1.5 cents per share. That takes the full-year dividend to 3 cents, up 50%, representing 58% of adjusted earnings.

The final dividend is payable on September 22. The record date is September 1, with shares trading ex-dividend from August 31.

FY27 Priorities

Tabcorp expects domestic wagering turnover growth in FY27 to broadly match FY26, excluding the FIFA World Cup. Operating-cost growth is expected to track general inflation of 3% to 3.5%.

Capital expenditure may reach $160 million. Investment will include next-generation retail terminals and strategic growth initiatives.

Meanwhile, the proposed BetMakers acquisition remains subject to conditions. Completion is targeted for the third quarter of FY27.

Tabcorp is targeting $30 million of annualised cost synergies by the end of the second ownership year. It expects the transaction to become earnings-per-share accretive from that year.