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.
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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.
