Tabcorp tumbles after earnings update
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More news: Tabcorp shares lost 6.4% by 11:30am AEDT after the group sent an earnings update, warning shareholders of lower revenues in 1Q24. TAH shares are fetching $0.91, down more than 20% on 2023's high of $1.16 in June.
Tabcorp revenues slump in September quarter
The news: Tabcorp has warned shareholders of weaker revenue in FY24's first quarter, amid soft market conditions and the sale of it eBet business.
The numbers: Group revenue was down 6.1% on the same quarter last year, while wagering and media revenue dropped 5.4% and digital wagering revenue fell 3.9%. Gaming services revenue sank 12.7%, which Tabcorp attributed to the sale of its eBet business and fewer contracted electronic gaming machines (EGMs).
The context: In February, Tabcorp unloaded its gaming venue technology business eBet for $62 million, which represented roughly ten-times its earnings. The gambling company is in the process of transforming its wagering system and is targeting to cut $600 million in operating costs by 2025, according to IT News.
What they said: "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," Tabcorp chief executive and managing director Adam Rytenskild said in a statement.
The sources: ASX Announcement, IT News
