Lucky punters have put a ding in Tabcorp’s interim results, although the gambling giant is still seeing strong growth in the number of young people placing bets.
The so-called “customer-friendly results” happened in the last six months of 2025 during the NRL and AFL grand finals and the spring horse racing carnival period.
Domestic wagering revenue fell by 2.5 per cent, before Victorian licensing impacts, despite modest growth in turnover, due to below-average yields.
“The reduction in yield versus longer-term averages was due to a run of customer-friendly results,” chief financial officer Mark Howell told an earnings briefing on Wednesday.
“Some of this softer yield was recovered through the back end of November and December.”
Tabcorp estimates the yield impact cost it about $10 million in net revenue, compared to longer term averages, according to Mr Howell.
Tabcorp’s first-half bottom-line net profit fell 14 per cent to $21.7 million from the prior corresponding period as group revenue rose by one per cent to $1.3 billion.
Group underlying earnings – excluding interest, tax, depreciation and amortisation – rose about 14 per cent to $217.4 million, which was ahead of the market consensus.
Overall earnings from its wagering and media business rose almost 16 per cent to $181.4 million.
CEO Gillon McLachlan said he was proud Tabcorp could deliver double-digit earnings growth in a half-year when wagering operators were hit by a “run of low yields”.
“We have been able to absorb this through strong execution … particularly on the cost side and through the diversity of our business,” he said.
Mr McLachlan said Tabcorp’s gameplan was to deliver punters an unrivalled omnichannel experience.
“We continue to innovate with new products and a better look and feel to create a genuine racing and sports entertainment offering,” he added.
The former AFL boss said the TAB brand was becoming “more youthful, sports orientated and experiential”.
“Turnover among 18 to 24 year olds was up 14 per cent,” he said, adding that its attention to tentpole assets such as the Liv Golf and US Super Bowl sports were an example of how Tabcorp was reaching a new cohort.
“We know customers want life experiences and attention spans are getting shorter. Stories sell and brand connection is increasingly more important.”
Tabcorp, which expects wagering turnover in the second half of the year to be similar to the first, declared an interim dividend of 1.5 cents, up 50 per cent.
Its shares were up almost 16 per cent to 98.5 cents in morning trading.
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