Australian racing and wagering giant Tabcorp has warned investors of a “a softer macro-economic environment” with a trading update for the September quarter revealing declines across most of its business segments.
While the company did not provide revenue numbers, Tabcorp did explain that group revenue was down 6.1% year-on-year during the quarter with Wagering turnover down 0.9% and Wagering & Media revenue down 5.4%. Digital Wagering Turnover was up by 1.0% although revenue fell by 3.9%, while Gaming Services Revenue fell 12.7% due to the sale of eBet and lower contracted EGMs.
Tabcorp Managing Director and CEO, Adam Rytenskild, said, “Given the softer trading environment, I’m pleased we grew digital wagering turnover, which highlights that customers are responding to our new digital customer offering. We continue to be relentless in the way we execute our TAB25 strategy and remain focused on making the right decisions for the long-term success of the business.
“As we head into the Spring Carnival and the start of the NBA season, I’m excited to have released our 13th update to the TAB App since it was launched last Spring.
“We’re in the midst of implementing significant change as a company and industry. Our strategy is on track as level playing field and licence reforms commence, our customer reputation grows, and cost base reduces. Our transformation continues at pace and I am confident we will deliver the value laid out in our TAB25 Strategy.”
Tabcorp shares were down 6.15% at close of business Thursday following the trading update.
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