Highlights:

• Macquarie’s 5.25% voting power disclosure adds fresh institutional attention around Tabcorp.
• FY26 earnings outpaced revenue growth, but execution now shifts to FY27.
• BetMakers promises technology gains, with approvals still standing between announcement and completion.

Tabcorp Returns to Focus

Tabcorp Holdings Limited (ASX: TAH), Australia’s wagering, media and integrity-services group, extended its ASX rally after ranking among the S&P/ASX 200’s top five gainers at the opening bell. Investor attention follows the company’s substantial-holder notice released on 21 September 2026, which showed Macquarie holding a 5.25% stake. This came after Tabcorp released its FY26 earnings on 26 August 2026 and announced its proposed acquisition of BetMakers Technology Group on 10 August 2026. Tabcorp was trading at a current market price (CMP) of AU$0.965, gaining approximately 4.89%.

Macquarie Crosses Threshold

Macquarie Group Limited and controlled entities disclosed an initial substantial holding, with the notice signed on 21 September 2026. Macquarie became a substantial holder on 16 September, reporting 120,418,846 votes, equal to 5.25% voting power. The interests span investment management, trustee and stock-lending activities, adding an institutional ownership dimension to Tabcorp’s recent developments.

FY26 Earnings Accelerate

Tabcorp’s FY26 results, released 26 August for the year ended 30 June, showed revenue of AU$2,636.3 million, up 0.8%, while EBITDA before significant items rose 10.3% to AU$431.7 million. Statutory NPAT increased 26.5% to AU$46.3 million, while NPAT before significant items climbed 43.6% to AU$71.1 million.

Cost discipline turned modest revenue growth into stronger earnings expansion. Underlying operating costs fell 0.8% on a comparable basis, helping the EBITDA margin rise 140 basis points to 16.4%. Net debt was AU$533 million at 30 June, while reported leverage declined to 1.2x.

Wagering and Media EBITDA advanced 9.9% to AU$361.8 million, while Integrity Services EBITDA increased 12.0% to AU$69.9 million. Domestic wagering turnover grew 0.9%, including 8.3% growth in sport turnover. Tabcorp also declared a 1.5-cent unfranked final dividend, taking FY26 dividends to 3.0 cents per share, up 50% from FY25.

BetMakers Acquisition Progresses

On 10 August 2026, Tabcorp signed a binding Scheme Implementation Deed to purchase all outstanding shares of BetMakers Technology Group (ASX: BET). The offer is AU$0.24 per share, implying about AU$283 million of equity value and AU$267 million of enterprise value. BetMakers shareholders may elect Tabcorp shares for part of the consideration, capped at 25%.

Tabcorp is targeting AU$30 million of annual run-rate cost synergies by the end of Year 2 and expects EPS accretion from Year 2, becoming double-digit from Year 3. Completion is targeted during 3Q FY27, subject to shareholder, court, ACCC and relevant gaming and racing approvals.

FY27 Growth Priorities

For FY27, Tabcorp anticipates domestic wagering turnover will expand at a similar pace to FY26, after excluding the impact of the FIFA World Cup. Operating expense growth is expected to track 3.0%-3.5% general inflation, while capital expenditure may reach AU$160 million. The key execution tests are retail technology deployment, National Tote progress, cost control and completion of the BetMakers transaction.

Note- All data presented is based on information available at the time of writing.

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