Tabcorp lifts FY26 profit, unveils new tech acquisition

The results show profit growth and a higher dividend, with a major tech acquisition planned.

The Tabcorp Holdings Ltd (ASX: TAH) share price is in focus today after the company delivered FY26 results showing revenue rose 0.8% to $2,636.3 million and group EBITDA climbed 10.3% to $431.7 million.

A group of three young men sit on a sofa in a home environment with a bowl of popcorn and beer bottles in front of them cheering on one of their teams on a phone.

Image source: Getty Images

What did Tabcorp report?

  • Group revenue: $2,636.3 million, up 0.8% on FY25
  • Group EBITDA: $431.7 million, up 10.3% on FY25
  • Net profit after tax (before significant items): $71.1 million, up 43.6% on FY25
  • Final dividend: 1.5 cents per share, unfranked; full year dividend: 3.0 cents, up 50%
  • Net debt at 30 June 2026: $533 million; leverage reduced to 1.2x EBITDA
  • Wagering & Media EBITDA: $361.8 million, up 9.9%; Integrity Services EBITDA: $69.9 million, up 12.0%

What else do investors need to know?

Tabcorp highlighted a strong focus on executing its transformation strategy, including cost discipline and a differentiated wagering product. The retail commercial model was updated, new betting terminals rolled out, and TAB LIVE in-play launched in pubs and clubs across approved states.

After the reporting period, Tabcorp announced an agreement to acquire BetMakers Technology Group, aiming to modernise its wagering technology and expand global B2B operations. This acquisition is expected to support further growth and efficiency once completed.

The company also extended and diversified its funding, issuing $300 million in notes and lengthening loan maturities. Liquidity stood at $1,161 million at 30 June 2026, and the company declared a 3.0 cent full-year dividend with a 58% payout ratio.

What did Tabcorp management say?

Gillon McLachlan, Managing Director & Chief Executive Officer, said:

Midway through our turnaround journey, we're executing on the plan, continuing to exercise cost and capital discipline and the Company is delivering earnings growth. The first two stages of our transformation were to get fit and operationalise our game plan. We've done that and we're ready to enter the growth phase of our transformation. Our proposed acquisition of BetMakers will accelerate our strategy, allowing us to release products faster and more cheaply while using BetMakers' complementary global assets to grow our international revenue opportunities.

What's next for Tabcorp?

Tabcorp expects domestic wagering turnover growth in FY27 to be broadly consistent with FY26, with further benefits anticipated from the Next-Gen terminal rollout and commercial model changes. Ongoing cost control and continued investment in strategic initiatives remain priorities.

Completion of the BetMakers acquisition, expected in the third quarter of FY27 and subject to regulatory conditions, is set to further modernise Tabcorp's operations and create new global growth opportunities. The company's strong balance sheet is expected to support its strategic goals.

Tabcorp share price snapshot

The Tabcorp share price has outperformed the S&P/ASX 200 index (ASX: XJO) on a 12-month basis with a strong gain of around 27%.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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