Tabcorp Surges Over 23% as Strong FY25 Results Impress Investors

Highlights:

• Tabcorp Holdings Limited (ASX: TAH) surged 23.2% to $0.875 at the time of writing, topping the ASX gainers list.
• FY25 revenue rose 11.8% to $2.61b, while EBITDA jumped 23.2% to $391.5m.
• Net profit before significant items climbed 76.8% to $49.5m, supporting a higher dividend of 2.0 cps.

Stock Jumps on Earnings Beat

Tabcorp Holdings Limited (ASX: TAH) emerged as the top gainer on the ASX after its shares rallied 23.2% to $0.875 at the time of writing. The surge followed the company’s FY25 results announcement, which highlighted strong revenue growth, improved profitability, and disciplined cost management.

Robust Financial Performance

For the year ended 30 June 2025, Tabcorp delivered group revenue of $2.61 billion, up 11.8% on FY24. EBITDA climbed 23.2% to $391.5 million, reflecting both operational efficiencies and the benefits of the modernised Victorian Wagering and Betting Licence, which contributed an estimated $83.7 million in earnings uplift. Net profit after tax before significant items soared 76.8% to $49.5 million, underscoring the company’s recovery momentum.

Cost Discipline Strengthens Balance Sheet

Tabcorp exceeded its cost-saving goals by cutting $39 million in expenses against a $30 million target. Net debt fell to $609 million, reducing leverage to 1.6x EBITDA. CEO Gillon McLachlan said the results showcased a “fitter business model” with clearer accountability and a sharper focus on customer engagement across digital and retail platforms.

Divisional Growth Drives Earnings

The Wagering & Media arm reported a 12.8% revenue rise to $2.44 billion, with EBITDA surging 31% to $329.1 million. Integrity Services also posted steady growth, with underlying revenue up 7.6% and EBITDA increasing 5.8%.
Dividend Boost and Strategic Outlook

The board declared a final unfranked dividend of 1.0 cent per share, lifting the full-year payout to 2.0 cents, a 54% increase from FY24. Looking ahead, Tabcorp plans to expand its omnichannel strategy, combining retail, digital, and media assets to create what McLachlan described as the “ultimate sports and racing entertainment experience.”

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