Tabcorp Holdings Limited

Group revenue increased 1% to $1.34 billion. EBITDA rose 14.3% to $217.4 million and EBIT rose 18.9% to $110.2 million. Variable contribution increased 4.3% while reported OpEx decreased 1.1%; OpEx adjusted for the reform Victorian license decreased 3.7%, and EBITDA margin improved 190 basis points to 16.2%. Domestic wagering revenue pre-VRI impact fell 2.5% despite modest turnover growth, and management estimated the net yield impact at around 15 basis points, or about $10 million of net revenue versus longer-term averages. CapEx declined 11% to $51 million, leverage ended at 1.5x net debt to EBITDA, and the interim dividend was $0.015 per share, up 50% on the PCP with a 56% payout ratio. For the full year, CapEx guidance remained $120 million to $140 million, cash conversion was expected to be 90% to 100%, and management said second-half wagering turnover conditions should be similar to the first half. They also flagged about $5 million of additional A&P spend in the second half for the 2026 FIFA World Cup.

Gillon Mclachlan framed the first half as evidence that Tabcorp’s turnaround plan is working, while repeatedly saying the company is still only midway through the process. He emphasized execution across retail, digital, media, and product innovation, highlighting TAB Time, TAB Takeover, and growth in younger customers as signs the brand is becoming more youthful and experiential. His tone was upbeat but measured: pleased with progress, not overconfident, and focused on continued discipline and delivery.

Mark Howell said earnings growth came from modestly improving turnover, strategic execution, and strict cost and capital discipline. He quantified the key drag from yields at about $10 million of net revenue, the VRI license benefit at $12.2 million of EBITDA, and said the license contributed $21.7 million to variable contribution offset by $9.5 million of costs. He also noted OpEx fell 3.7% adjusted for the license, CapEx dropped to $51 million, cash conversion was 86% in the half with a full-year target of 90% to 100%, and leverage improved to 1.5x after issuing $300 million of notes at a 5.99% fixed coupon.

Analysts pressed on the second-half turnover outlook, the mix between cash and digital, retail venue economics, TAB Time’s impact on younger customers, the rollout of next-generation betting terminals, and the timing of TAB Live. Management said the second half should look similar in growth terms to the first half, declined to forecast the cash/digital split, and said retail is central to the strategy with positive cash growth and strong digital venue growth. On TAB Live, they said ACMA clearance clears the way to begin in New South Wales, while the terminal rollout starts the first week of July and is included in the $120 million to $140 million CapEx range.