Australian wagering and lottery company Tabcorp has published its financial report for FY2021, revealing it has returned to profitability after making significant losses in FY2020.
In the year leading up to June 30, Tabcorp recorded a profit of AU$269m, largely thanks to the operations of its Lottery and Keno, which saw improvements in sales. This is in contrast to FY2020 when the company lost AU$870m. Total group EBITDA was up 11.3% up to AU$1.11bn.
Group-wide revenues grew by 8.8% from FY2020 up to AU$5.89bn, with Lotteries and Keno revenues accounting for AU$3.21bn of that figure. The Lotteries and Keno sales jumped 9.9% from FY2020 and digital lotteries accounted for 32.8% of the total lottery turnover for the period.
The strong lottery financials came despite relatively low jackpot amounts compared to usual averages. Low jackpots usually result in lower player engagement and lower customer acquisition.
Tabcorp Managing Director and CEO, David Attenborough, commented: “The Lotteries and Keno business recorded another record profit result driven by strategic game and portfolio development and digital growth.
“It continued its strong growth trajectory since the Tabcorp and Tatts combination in December 2017.
“As we work towards the demerger of Lotteries and Keno in 2022, this result demonstrates the resilience, quality and potential of our businesses to compete and grow as standalone companies.”
The successful result comes after the reopening of Australian society following the COVID-19 lockdowns of 2020.
Though 32.8% of users played the lottery online, the vast majority opted to use physical outlets, which would have been closed in 2020. Coupled with unemployment and more cautious economic conditions due to the lockdowns, FY2020 was not a good condition for lotteries. However, Tabcorp noted that it was proud of the way it fought back to profitability.
Attenborough added: “In the face of substantial challenges of the COVID-19 pandemic, our business delivered a strong operational performance and double-digit earnings growth.
“Our teams and business partners worked collaboratively to manage the evolving restrictions and our omni-channel business model ensured our customers could continue to enjoy their gambling entertainment experiences.”