Insights

The Tabcorp (ASX:TAH) share price is rising on full-year results

Tabcorp shares are rising on its bumper results.
The post The Tabcorp (ASX:TAH) share price is rising on full-year results appeared first on The Motley Fool Australia. –

The Tabcorp Holdings Limited (ASX: TAH) share price is in the green after the release of its full-year results.

At the time of writing, shares in the gambling company are trading for $4.90 – up 1.03%. For comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.21% higher.

Let’s take a closer look at the news.

Tabcorp share price rises on $269 million profit

As The Motley Fool has already reported, TAB had a bumper FY21 – and it reflects in the rising Tabcorp share price.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) before significant items of around $1.1 billion – up 11.3% on FY20.
Approximately $5.6 billion of revenue – an 8.8% year-on-year increase.
Roughly $3.2 billion of revenue from Lotteries & Keno segment, up 9.9%.
10.3% increase to Wagering & Media segment’s revenues, it brought in around $2.2 billion.
7-cent final dividend, bringing FY21’s total dividends to 14.5 cents per share – 31.8% more than FY20.

In FY20, Tabcorp made an $870 million loss. Today’s $269 million profit is clearly a step up for the company.

Some news that affected the company during the financial year included plans to demerge its lotteries business, a $600 million capital raise, and a takeover offer from BetMakers Technology Group Ltd (ASX: BET) that was put on pause.

Management commentary

Tabcorp chair Steven Gregg and managing director David Attenborough released a joint statement on the company’s FY21 earnings.

While Tabcorp’s operations were impacted by various government-imposed lockdowns and other restrictions, our businesses proved resilient and delivered a strong operational result and earnings growth…

Our Lotteries & Keno business produced a record profit result and continued its strong growth trajectory since the Tabcorp-Tatts combination in December 2017. Pleasingly, we saw improved performance from Wagering & Media, with growth in its TAB, Media and International businesses. Gaming Services, however, was severely impacted by the COVID-19 restrictions on hotels and clubs.

Tabcorp share price snapshot

Over the past 12 months, the Tabcorp share price has increased 34%. It has outperformed the ASX 200 by roughly 11 percentage points. Year-to-date Tabcorp shares are 22.3% higher.

Tabcorp has a market capitalisation of about $10.8 billion.

The post The Tabcorp (ASX:TAH) share price is rising on full-year results appeared first on The Motley Fool Australia.

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More reading

Tabcorp (ASX:TAH) share price on watch on FY21 earnings
How did the Tabcorp (ASX:TAH) share price respond last earnings season?
Tabcorp (ASX:TAH) share price falls amid latest push to AI technology
Tabcorp (ASX:TAH) share price rises after vaccine lottery idea
Expert expects demerger to benefit Tabcorp (ASX:TAH) share price

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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