Tabcorp Holdings (ASX: TAH) banks on TAB25 strategy to boost market share and improve VC margins

4 min read | June 24, 2024 02:47 PM AEST | By Team Kalkine Media

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Tabcorp Holdings (ASX: TAH) banks on TAB25 strategy to boost market share and improve VC margins — Image source: Pexels

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Highlights

Tabcorp Holdings is an ASX listed gambling and entertainment services company

In 1HFY24, TAH recorded 5% YoY drop in revenue to AUD 1,210 million

AustralianSuper has the maximum stake in the firm with a shareholding of 9.36%

Founded in 1961, Tabcorp Holdings Limited (ASX: TAH) is a gambling and entertainment services company that has two operating businesses, wagering and media, and gaming services. Under the wagering and media segment, the company offers totalizator and fixed odds betting, worldwide racing media enterprise and retail wagering networks.

In the first half of the financial year 2024 (1HFY24), the company witnessed 5% YoY fall in its group revenue to AUD 1,210 million, emphasising the current trading conditions. Meanwhile, in 1HFY24, group EBITDA decreased by 14% YoY to AUD 170 million and group EBIT fell by 32% YoY to AUD 50 million.

During the reported period, the net profit after tax decreased to AUD 18 million from AUD 47 million in 1HFY23.

Key drivers for consumer discretionary sector

The data published by the Australian Bureau of Statistics (ABS) on 13 June 2024 revealed that in May 2024, the number of unemployed people decreased by 9,000, after recording an increase of 33,000 people in April. The data by ABS indicated that in May, employment grew by nearly 40,000 people, resulting in a fall in the unemployment rate to 4% in seasonally adjusted terms.

Furthermore, the data indicated that employment-to-population ratio stood at 64.1% in May, full-time employment surged by 41,700 and part-time employment decreased by 2,100.

Top 10 shareholders of TAH

The top 10 shareholders of TAH have around 30.73% shareholding in the company. AustralianSuper and Magellan Asset Management Limited have the highest stake in the group with a shareholding of nearly 9.36% and 5.21%, respectively.

Recent business update

Through an ASX-filing dated 24 June 2024, the company shared the timetable for the full-year results. On 28 August 2024, the company is expected to release its full year results for FY24. The scheduled ex-dividend date is 2 September 2024, scheduled record date is 3 September 2024 and expected payment date is 20 September 2024.

Outlook

In 2HFY24, the company expects around a 1% increase in operating expenses. In FY24, the company expects capital expenditures of up to AUD 150 million.

TAH expects its TAB25 strategy to boost market share and improve VC margins. Moreover, the new Victorian License, which will be effective from August 2024, is expected to generate substantial earnings along with a competitive advantage.

Share performance of TAH

TAH shares closed 1.45% higher at AUD 0.70 apiece on 24 June 2024 with a market cap of AUD 1.57 billion. In the past one year, TAH’s share price has dropped by almost 35.19%, while in the last one month, it has recorded a gain of 12%.

The 52-week high of TAH is AUD 1.15, recorded on 24 August 2023, while the 52-week low is AUD 0.585, recorded on 13 June 2024.

TAH Daily Technical Chart, Source: EODHD/Others

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 24 June 2024. The reference data in this report has been partly sourced from EODHD/Others.

Disclaimer

This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.

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