Tabcorp shares rally on swing to full-year profit
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More news: Tabcorp shares surged this morning after the gambling business returned to a full-year net profit.
Shares were up 22.5% to 87 cents at 11:30am AEST. The stock is now up 54% over the last 12 months.
Tabcorp returns to full-year profit, lifts dividend on $39m in savings
The news: Wagering giant Tabcorp swung to a full-year statutory profit of $36.6 million after posting a $1.36 billion net loss in FY24, as the company achieved better-than-expected results from cost-cutting initiatives during the year.
The numbers: The result was roughly in line with consensus estimates of a $36.7 million profit, according to Visible Alpha.
Group revenue came in at $2.61 billion, an 11.8% improvement on the $2.34 billion the company posted in FY24 and above average forecasts of $2.59 billion.
Tabcorp delivered operating expenditure savings of $39 million, ahead of its upgraded annual target of $30 million, after cutting 230 roles during the year.
A final dividend of 2 cents per share was declared, up from last year's payout of 1 cent and above market expectations for a 0.4 cent dividend.
The context: Tabcorp said its result reflected a "fitter company", with increased wagering and media capability, and a simpler and more cost-effective operating model.
The group said earnings growth in FY25 was driven by the benefits of its reformed Victorian licence, a "modestly improving" turnover environment, as well as cost and capital discipline.
Tabcorp expected the wagering market to "modestly grow year on year" in FY26.
The source: ASX
