Tabcorp Provides 1Q24 Trading Update Amidst Market Challenges

Tabcorp Holdings Limited (ASX:TAH) has released its 1Q24 trading update, revealing significant developments in its financial performance.

Group Revenue Down 6.1%

In the period from July 1, 2023, to September 30, 2023 (1Q24), Tabcorp reported a 6.1% decline in group revenue. This downturn is occurring within the context of a challenging macro-economic environment, prompting the company to keep its stakeholders informed.

Wagering Turnover Decreases

Wagering turnover also faced challenges, declining by 0.9% during 1Q24. However, there were noteworthy distinctions within this segment.

Digital Wagering Growth

Remarkably, digital wagering turnover defied market conditions, experiencing a 1.0% growth compared to the prior corresponding period. This points to a positive response to Tabcorp's new digital customer offering.

Wagering & Media Revenue Impact

Despite the digital wagering success, Wagering and Media revenue were down 5.4%. This reduction is primarily attributed to lower fixed odds yields influenced by Racing and Sports results.

Gaming Services Revenue Drop

Tabcorp experienced a substantial decline in Gaming Services revenue, which was down by 12.7%. This was mainly due to the sale of eBet business in February 2023 and reduced contracted Electronic Gaming Machines (EGMs) in the MPS business when compared to the prior corresponding period.

Future Prospects and Strategy

Tabcorp's Managing Director & CEO, Adam Rytenskild, acknowledged the challenging trading environment and expressed satisfaction with the growth in digital wagering turnover. He emphasized the company's dedication to executing its TAB25 strategy and making decisions to ensure long-term success.

Rytenskild also highlighted the ongoing transformation within Tabcorp, with key changes, including level playing field and license reforms, enhanced customer reputation, and a reduced cost base. He expressed confidence in the company's ability to deliver the value outlined in the TAB25 Strategy.

As Tabcorp navigates market fluctuations, it anticipates an exciting period with the Spring Carnival and the commencement of the NBA season, continuing its journey of innovation and adaptation to evolving industry dynamics.

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