Tabcorp Holdings Ltd reported a 44% increase in net profit before significant items for the fiscal year ended June 30, 2026, as earnings growth outpaced rising costs. The Australian wagering and media group posted AUD 71.1 million in NPAT before significant items, up from AUD 49.4 million a year earlier, while revenue edged up 0.8% to AUD 2.64 billion.
EBITDA rose 10.3% to AUD 432 million, lifting the EBITDA margin to 16.4%, a 140-basis-point improvement. EBIT increased 15.9% to AUD 219 million, and return on invested capital climbed to 12% from 9.6% in the prior year. Net leverage stood at 1.2 times on a pro forma basis for the BetMakers acquisition, which is expected to close in the third quarter of fiscal 2027 pending shareholder and regulatory approvals.
The company declared a full-year dividend of 3 cents per share, a 50% increase from the prior period, maintaining a payout ratio of 58% within its 50%-70% policy. The final dividend was set at 1.5 cents per share. Tabcorp’s share price fell 3.59% to AUD 0.873 following the announcement, extending a decline from its 52-week high of AUD 1.19.
Operating expenses rose as the group invested in regulatory compliance, risk programs, and loyalty initiatives, with total OpEx expected to increase 3%-3.5% in fiscal 2027. Capital expenditure is forecast to rise to AUD 160 million, driven by the rollout of next-generation betting terminals, with AUD 65 million allocated for the program in the coming year. The terminals are projected to deliver a return on investment of at least 25%.
Revenue growth was supported by an 8% increase in sports wagering turnover, while digital in-venue turnover climbed 9% overall and 25% within the 34-and-under demographic. The FIFA World Cup contributed to a 57% rise in retail turnover and a 53% increase in digital turnover compared with the previous tournament, though advertising spend related to the event totaled AUD 5 million. Parimutuel betting, which accounts for roughly one-third of the business, continued to decline at a rate of 5%-6% annually.
Tabcorp’s retail commercial model delivered AUD 22 million in EBITDA benefits in fiscal 2026, with full run-rate benefits expected in fiscal 2027. The Victorian wagering and betting licence added AUD 12 million in incremental EBITDA over the 12-month period. Integrity services fees rose by AUD 6 million due to annual CPI adjustments and project work.
Management guided for wagering turnover to remain broadly stable in fiscal 2027, with CapEx rising alongside terminal replacements. The group also noted that new gambling advertising rules are set to take effect in January 2027, while the national tote launch remains contingent on regulatory approval in New South Wales.
