Tabcorp enjoys change of fortunes as new app boosts digital performance

The wagering giant’s September quarter was better than last year, as retail outlets reopened. But it also says its digital business is improving thanks to a new app.

Tabcorp CEO Adam Rytenskild wants the business to focus more on digital wagering.

Revenue for wagering giant Tabcorp surged 18.7 per cent in the September quarter as the company enjoyed a change in fortunes with no Covid lockdowns.

Tabcorp was hit hard by lockdowns at many of its venues in Victoria and NSW this time last year, but chief executive Adam Rytenskild told the company’s annual general meeting in Brisbane on Wednesday the company’s wagering and media division had helped drive the turnaround this year.

“Revenue was up 14.2 per cent and digital revenue market share was 24.7 per cent, up from 23.9 per cent in the fourth quarter of FY22 and stable on the comparative period.” he said.

“This again highlights that we have stabilised and improved digital market share after it fell below 24 per cent in the 2022 financial year.”

Tabcorp could seek to further improve that market share by making a late play for the Western Australian wagering licence, which is still available after the withdrawal of rival Betr from the bidding process earlier this week.

Betr, headed by digital wagering pioneer Matthew Tripp, was set to be named as the WA government’s preferred bidder for the $1bn asset this week but sensationally pulled out of the race over a potential dispute regarding using its brand in conjunction with the TAB brand in the west.

Tabcorp owns and operates the TAB brand around the rest of the country, though the WA government owned entity has rights to it in WA only.

Betr’s withdrawal from the race leaves previous underbidders Tabcorp and Entain Group, the London-lister owner of the Ladbrokes and Neds brands in Australia, in contention.

Tabcorp has played down its interest in the WA licence, with Mr Rytenskild making several references in recent months to not overpaying for retail assets.

When asked about the WA licence at Wednesday’s AGM, Tabcorp chairman Bruce Akhurst said: “We only know what we are reading in the newspapers at the moment.”

Mr Rytenskild has said he wants Tabcorp’s focus to be on its digital wagering offerings and on Wednesday highlighted the performance of Tabcorp’s new TAB app, which has been launched in time for the big racing seasons in Melbourne and Sydney.

“I like to say we’re ripping off the cardigan and I believe we have. We are more nimble and agile than we were in the past,” he said.

“Compared to the six-week period prior to [the TAB app] launch, there’s been a 16 per cent increase in active weekly customers, a 7 per cent increase in the average bet and a 33 per cent increase in reactivations.

“[The recent] TAB Everest Day was TAB’s highest turnover day on a NSW meeting in the history of our business.”

Revenue in Tabcorp’s gaming services division was up 91.7 per cent in the September quarter compared to the same period last year when many gaming venues were shut.

Tabcorp recently secured the licence to monitor all electronic gaming machines in

Tasmanian pubs and clubs.

“This is just the start. We have bold plans to grow the integrity services business,” Mr Rytenskild said.

Mr Akhurst also doubled down on previous criticism about the among of gambling advertising, saying there was “too much” in Australia.

“We support government policy that places additional restrictions on gambling advertising and look forward to participating in the [upcoming] Federal Government’s online gambling inquiry.”

Rivals Sportsbet and Entain spent a combined $215m on advertising and marketing last year.

Tabcorp shares closed up 1 per cent at 98.5c each.