Tabcorp share price flat following mixed FY19 release

Investors responded with a lukewarm shrug when Tabcorp reported its FY19 results today, with its share price rising just 0.69%.

Earnings alone are usually not enough.

Indeed, Tabcorp Holdings Ltd (ASX: TAH) barely saw its share price budge when it reported its FY19 results today – even though it saw its revenue and earnings both rise.

Investors responded with a lukewarm shrug: with Tabcorp’s share rising just 0.69% by the time the market closed.

Revenue and earnings gain ground

When Tabcorp Holdings Ltd reported its 2019 earnings today, the company reported good – but not spectacular growth.

On the revenue front, Tabcorp posted sales of A$5,482 million – up 8.7% from the year prior.

Earnings (EBITDA) also grew, clocking in at A$1,064 million for FY19 – an increase of 7.4%.

Speaking of Tabcorp's 2019 results, the company's Managing Director and CEO, David Attenboroug said:

'Tabcorp delivered a strong group result in the first full year of the combined Tabcorp and Tatts business, reflecting the compelling logic of the combination and the benefits of diversification and scale.'

The gambling company has also modestly increased its dividend in 2019, reporting a full-year dividend of 22.0 cents, including a fully-franked final dividend of 11.0 cents.

Overall, this represents a dividend increase of 4.8% on a year-over-year basis.

Digital growth charts a course forward

As we mentioned in our Tabcorp earnings preview, the gambling giant continues to witness impressive growth from its digital initiatives.

For example, in FY19, lotteries and wagering digital turnover both rose 73.5% and 7.7%, respectively.

Tabcorp additionally reported that a brand new omni-channel model is currently ‘being rolled out with Lotteries' retail partners, subject to regulatory approval.’

Tabcorp share price: a ‘strong’ outlook

Investors are constantly torn between what a company projects will happen and what actually ends up happening.

Indeed, even though Tabcorp was faced with a cold shoulder today, its mid-term outlook, at the very least, appears stable.

Speaking of the Tabcorp-Tatts partnership that we touched on above, CEO David Attenborough commented that the company has:

‘Created a strong and diversified portfolio of high-quality businesses across Lotteries & Keno, Wagering & Media and Gaming Services,’ with Mr Attenborough continuing that, ‘our businesses have a clear set of priorities to build on their competitive advantages and drive long-term profitable growth.’

Tabcorp Holdings Ltd's final dividend is set to be paid on September 20.

Even with today’s FY19 results, year-to-date Tabcorp (ASX: TAH) has still only risen 3.7%.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.