Tabcorp Holdings has retained steady revenue during the first half of the 2026 financial year, reporting marginal growth in a heavily saturated market.
The ASX gambling group reported year-over-year revenue growth of 1% for July-December 2025, standing at AU$1.34bn (£68m), against $1.31bn the year prior.
Whilst revenue growth is marginal, Tabcorp sees its H1 EBITDA raise by 14% from $190.2m to $217.4m. Group accounts detail enhanced cost disciplines benefitting EBITDA margin by a 16% improvement.
Leadership expects the second half of the year (January-June 2026) to see broadly similar conditions to the first, while it mainly focuses on ‘executing against our evolved strategy’.
“Our 1H26 results highlight that we are a more consistent company, with greater capability,” said Gillon McLachlan, Managing Director and Chief Executive Officer of Tabcorp. “We’re executing on our game plan while delivering ongoing cost and capital discipline.
“There’s greater depth in our business. I’m proud we’ve delivered double digit earnings growth in a half where wagering operators were impacted by a run of low yields during the Footy Finals and Spring Racing Carnival.
“We have been able to absorb this through strong execution by the team, particularly on the cost side, and through the diversity in our business.”
Closing H1 accounts, Tabcorp projects net-profits-after-tax of $35.7m. Of significance, period trading saw Tabcorp renegotiate new terms on debt-bonds lowered to a 1.5x ratio as existing debt stands at $631m
Victoria drives Tabcorp success
Group-wide revenue was largely driven by income from its Wagering and Media division, encompassing the TAB retail and online sportsbook and the Sky Racing media outlet.
Wagering and media revenue grew at a similar margin, up 0.8% to $1.25bn ($1.24bn) while domestic wagering revenue specifically was up 1.1% against the previous year.
However, the impact of changes to Victoria betting licences cannot be understated here, and Tabcorp has acknowledged the impact of this – noting that if the reformed Victoria licences were excluded, domestic wagering revenue actually dropped 2.5%.
Victoria embarked on an extensive regulatory reform mission in 2023, with enhanced standards around player protection, gambling harm prevention and anti-money laundering – and a 20 year exclusive betting licence for Tabcorp starting in August 2024.
This has, understandably, given Tabcorp a significant leg up in Australia as the exclusive betting operator in the country’s second most populous state. The benefits this made to betting revenue was complemented by 0.2% growth in media revenue to $192.4m.
McLachlan added: “Through TAB and Sky, our digital, retail and media assets are more closely connected, creating a genuine omnichannel experience for our customers and I expect that to evolve further in the second half of the year. TAB Takeover, TAB Time, Mega Pot and Miss By One products are examples of the differentiation we are creating.”
As stated above, Tabcorp has placed implementation of its ‘evolved strategy’ as a key focus for 2026, a process which McLachlan was chosen to lead back in January 2025.
The group wants to make progress in omnichannel betting in particular, an ambition which took a big step forward this week when its in-store/online in-play betting product was given the green light by the Australian Communications and Media Authority (ACMA).
Although the firm expects betting turnover conditions to remain broadly the same this year, albeit with some planned advertising spend around the World Cup, it is undeniable that Tabcorp finds itself operating in a shifting landscape for Australian betting.
The market has become increasingly competitive over the past couple of decades with Entain, Flutter Entertainment and bet365, among others, setting up shop. Newcomers have also stepped into the fray, such as challenger brands like Betr.
Meanwhile, the prospect of federal regulatory reforms still hangs over the sector as MPs continue to put pressure on PM Anthony Albanese to make good on the 31 recommendations of the Murphy report – though the PM”s progress on this has been slow, to the frustration of backbenches.
McLachlan concluded: “There’s more to do and we’re not where we want to be yet, but we have made significant progress in the first half, and we will remain relentless in executing on our strategy in the second half and beyond.”