Tabcorp Holdings (ASX:TAH) shares are steady today

Tabcorp Holdings (ASX:TAH) shares are steady today — here's what's happening

Sonal Goyal

26 August 2026 06:46 PM AEST

Tabcorp Holdings (ASX:TAH) shares are steady today — here's what's happening

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Key Highlights

Group Revenue was $2,636.3 million, up 0.8% on FY25, while Group EBITDA rose 10.3% to $431.7 million, with EBITDA Margin improving 140 basis points to 16.4%.
Domestic wagering turnover increased 0.9%, including Sport turnover up 8.3% and Digital-In-Venue turnover up 9.1%, alongside an underlying cost reduction of 0.8%.
Subsequent to year end, Tabcorp announced the proposed Acquisition of wagering technology provider BetMakers and delivered industry agreement on a National Tote.
Net Debt was $533 million as at 30 June 2026, with financial Leverage reducing to 1.2x, well within the company's target range of less than 2.5x through the cycle.

Tabcorp Holdings (ASX:TAH) shares were little moved after the wagering group posted double-digit FY26 EBITDA growth and unveiled a proposed acquisition of wagering technology provider BetMakers. Tabcorp (ASX:TAH) shares were trading at $0.91, up 0.22% (+$0.0020), as at 3:43pm AEST on 26 August 2026.

Tabcorp Holdings Limited has reported Group Revenue of $2,636.3 million for FY26, up 0.8% on FY25, including growth in both Wagering and Media and Integrity Services. Group operating expenses increased 0.5% to $700.7 million, reflecting inflation, partly offset by cost control, with underlying operating expenses down 0.8% when adjusted for the impact of the reformed Victorian Wagering and Betting Licence.

The combination of revenue growth, cost control and benefits from Phase 1 of the new retail commercial model delivered Group EBITDA growth of 10.3% to $431.7 million, with EBITDA margin improving 140 basis points to 16.4%. Wagering & Media revenue was up 0.7% on FY25, with EBITDA of $361.8 million, up 9.9%. Integrity Services revenue was up 3.3% on FY25, with EBITDA of $69.9 million, up 12.0%.

Net Profit After Tax before significant items was $71.1 million, up 43.6% on FY25. The Board declared a final Dividend of 1.5 cents per share, unfranked, bringing the full-year dividend to 3.0 cents per share, up 50% on FY25.

Domestic wagering turnover increased 0.9% for the year, including Sport turnover up 8.3% and Digital-In-Venue turnover up 9.1%. Key strategic initiatives delivered during the year included a new retail commercial model and the commencement of the rollout of new betting terminals and the TAB LIVE in-play product.

On 10 August 2026, Tabcorp announced it has agreed to acquire 100% of the Issued Shares in BetMakers Technology Group by way of a scheme of arrangement, subject to certain conditions. The company said the transaction accelerates modernisation of Tabcorp's wagering technology stack, leveraging BetMakers' technology transformation over the past two years.

Tabcorp is targeting a run-rate of $30 million of cost synergies by the end of Year 2 of ownership, with revenue growth opportunities providing further upside. The transaction is expected to be Earnings Per Share accretive from Year 2 and double-digit EPS accretive from Year 3. Pro forma leverage from the transaction is expected to be 1.6x, assuming 25% scrip take-up. Completion is targeted during the third quarter of FY27.

Net debt as at 30 June 2026 was $533 million. In November 2025, Tabcorp priced $300 million of 5.5-year notes with a fixed coupon of 5.99% under a new AMTN programme. In June 2026, Tabcorp extended its existing A$980 million syndicated term Loan Facility on improved pricing terms. The weighted average Maturity of drawn debt facilities has been extended to 4.9 years, with Liquidity increasing to $1,161 million as at 30 June 2026.

Tabcorp expects domestic wagering turnover growth in FY27 to be broadly consistent with FY26, excluding the FIFA World Cup. Capital Expenditure is expected to be up to $160 million, with Depreciation and Amortisation in the range of $225 million to $235 million.

Conclusion

Tabcorp's FY26 result reflects growth in EBITDA and Net Profit After Tax against a backdrop of broadly flat revenue, supported by cost discipline and benefits from the company's new retail commercial model. The proposed acquisition of BetMakers, announced subsequent to year end, is positioned by the company as a further step in modernising its wagering technology stack, with completion targeted during the third quarter of FY27 subject to conditions.

FAQs

Q: How much did Tabcorp's EBITDA grow in FY26?

A:Group EBITDA increased 10.3% to $431.7 million, with EBITDA margin improving 140 basis points to 16.4%, driven by revenue growth, cost discipline and benefits from the new retail commercial model.

Q: What is the BetMakers acquisition and when is it expected to complete?

A:Tabcorp has agreed to acquire 100% of BetMakers Technology Group by way of a scheme of arrangement, targeting completion during the third quarter of FY27, subject to certain conditions.

Q: What synergies is Tabcorp targeting from the BetMakers acquisition?

A:Tabcorp is targeting a run-rate of $30 million of cost synergies by the end of Year 2 of ownership, with the transaction expected to be EPS accretive from Year 2 and double-digit EPS accretive from Year 3.

Q: What is Tabcorp's net debt and leverage position?

A:Net debt was $533 million as at 30 June 2026, with reported leverage of 1.2x, well within the company's target range of less than 2.5x through the cycle.

Q: What dividend did Tabcorp declare for FY26?

A:Tabcorp declared a final dividend of 1.5 cents per share, unfranked, bringing the full-year dividend to 3.0 cents per share, up 50% on FY25.

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