New call-to-action


See all



Tabcorp Holdings Limited Falls 4% After Reporting Financial Results

Tim Montague-Jones

Tim Montague-Jones has over 20 year investment management experience working in the financial markets. Previous experience includes a ten year stint at Morningstar as a Senior Equity Analyst/Portfolio Manager, founding the Morningstar Growth Portfolio and a founding member of their Investment Committee. Tim was also a Senior Equity Analyst for Macquarie Group and a member of the winning team to obtain the 2016 LONSEC Fund Manager of the Year award.

Tabcorp Holdings Limited (ASX: TAH) has announced their results this morning shortly before market open. The company reported an increase in revenue of 4.4% and EBITDA of 2.1%. Integration between TAB and Tatts continues and remains on track to achieve FY21 target of $130-$145m EBITDA.



Tabcorp Holdings Limited (ASX: TAH) has announced their results this morning. The company came off 4%, despite reporting a 4.4% increase in revenue and a 2.1% increase in EBITDA. (Credit: ASXReport.com).


Lotteries & Keno segment’s revenue grew 12.4%; and earnings 16%, driven by Powerball game change and greater alignment with retail partners, leading to 300k additional active registered players. Wagering and media’s revenue fell 3.7% from soft consumer discretionary spending and cycling a strong pcp which had the Soccer World Cup.

The Gaming Services segment is under review with revenue falling 4.4% and earnings down 14.1%. The decline was due to contract expiries, contract extensions at lower daily rates and reduced project work.

The core business of the company as well as the integration of the TAB and Tatts merger are performing well and in line with expectations. However, the high margin Gaming Services business (5% Rev; 11% EBITDA) has been underperforming, possibly due to a competitive environment leading to contract expirations and downwards pricing pressure.

Investors have sold Tabcorp off this morning, with the stock falling 4% shortly after market open. However, some investors remain attracted to the stability of Tabcorp’s earnings yield. However, to them, it would be advised to remain cautious of the decline in earnings from the Gaming Services segment.




This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

New call-to-action