Tabcorp returns to profit in FY25 on wagering growth, licence transition

Australian gambling company Tabcorp reported a net profit of AU$36.6 million ($24 million) for the year ended June 30, 2025, rebounding from a AU$1.36 billion ($884 million) loss a year earlier, helped by double-digit growth in its wagering and media business and lower one-off costs. 

Revenue rose 11.8% to AU$2.61 billion ($1.69 billion), driven by a 16.7% increase in domestic wagering to AU$2.04 billion, including AU$1.07 billion from digital activity. Wagering and media revenue climbed 12.8% overall to AU$2.44 billion, while integrity services revenue was broadly flat at AU$175.8 million.

EBITDA before significant items rose 23.2% to AU$391.5 million, and operating profit almost doubled to AU$188.8 million. Net profit before significant items reached AU$49.5 million, up 76.8%. Significant items fell sharply to AU$12.9 million, compared with AU$1.36 billion in FY24.

The turnaround followed Tabcorp’s transition to a new 20-year Victorian wagering and betting licence in August 2024, which boosted revenue after ending a joint venture in the state.

Chief Executive Gillon McLachlan, who took over in August 2024, said: “Today we are a fitter business. A business with an improved cadence, a simpler, more cost-effective operating model, and an improved culture of cost and capital discipline. We have a clear strategy and clear lines of accountability that are allowing us to execute on a bolder strategic plan.”

“We’ve increased our wagering and media capability at the leadership level, developed a simpler, more cost-effective operating model, and are operating with a bias for action and increased accountability,” McLachlan added.

He added that Tabcorp had become “digitally competitive” and was focused on an omnichannel strategy to drive future growth. “Now that we are digitally competitive, our focus has broadened to using our entire asset base to create the ultimate sports and racing entertainment experience. This is the omnichannel offering that will drive growth in the future,” he said.

McLachlan said a nationwide tote remained a key goal, noting Tabcorp would work “collaboratively with industry to try to achieve this.”

During the year, Tabcorp signed partnerships with 1/ST Content and PandaScore. It also paid a AU$262,920 fine for accepting more than 850 illegal in-play bets between April and October 2023.

Looking ahead, the company gave no revenue or earnings guidance for FY26 but forecast capital expenditure of AU$120 million to AU$140 million, and depreciation and amortisation of AU$215 million to AU$225 million.