Tabcorp Holdings Ltd Posts 10% EBITDA Growth and 50% Dividend Lift in FY26

Tabcorp lifts EBITDA 10% and hikes dividend 50% in FY26 turnaround

In its FY26 results presentation delivered to investors on 26 August 2026, Tabcorp Holdings reported Group EBITDA of $431.7M, up 10.3% for the year ended 30 June 2026, alongside a full-year unfranked dividend of 3.0 cents per share, a 50% increase on the prior year.

The Tabcorp FY26 results showed net profit after tax before significant items of $71.1M, up 43.6%, on revenue of $2,636.3M (+0.8%). The figures point to a turnaround gaining traction, with cost discipline delivering operating leverage on modest revenue growth.

Management framed the year as evidence of strong execution against a strategic reset, with margin expansion and the dividend lift signalling confidence in the direction the business is taking.

FY26 result headline metrics

The presentation detailed a top-line scorecard reflecting earnings growth well ahead of revenue.

The result was supported by disciplined capital management, with several metrics moving in the company’s favour:

• EBITDA margin improved 140bps to 16.4%

• ROIC improved 240bps to 12.0%

• Reported leverage reduced to 1.2x (target of below 2.5x through the cycle)

• Capex of $140M, in line with guidance

The dividend was declared unfranked, reflecting the impact of prior-year tax refunds on the franking account balance. Tabcorp noted the 3.0 cps payout represents 58% of adjusted EPS.

How Tabcorp connected its assets to drive growth

The presentation outlined an operational story built around connecting Digital, Retail and Media assets to deliver differentiated wagering products.

Key performance indicators across the wagering business included:

• Domestic wagering turnover +0.9% (Cash +1.0%, Digital +0.8%)

• Sport turnover +8.3% and Digital-in-Venue turnover +9.1%

• FIFA World Cup 2026: digital active customers +26% and retail turnover +57% versus the 2022 tournament

Tabcorp flagged that the FIFA World Cup 2026 figures relate to the entire tournament held across June and July, with approximately half the wagering activity falling into FY27, and are measured against the 2022 event.

On yields, the company noted below-average gross yields in the first half normalised in the second half, with net digital yield lifting from 12.3% in 1H26 to 12.9% in 2H26. Sport and in-venue growth helped offset the decline in racing turnover.

A new retail commercial model taking shape

Tabcorp detailed the delivery of its new retail commercial model, reporting more than 3,300 venues operational, representing 97% of turnover from the prior network. Phase 1 of the model delivered $22M of incremental EBITDA in FY26.

Key changes to the commercial model included:

• A new all-inclusive subscription Weekly Fee

• Removal of the previous EBT rental fee related to legacy terminals

• A progressive commission structure to better align incentives

• $50M of retail-exclusive generosity

The company also commenced the rollout of Next-Gen betting terminals and TAB LIVE across the venue network over approximately two years. Tabcorp is targeting a ROIC of greater than 25% on terminal capex of around $130-140M across FY26 to FY28.

What is the National Tote, and why it matters for investors

Tabcorp reported that agreement was reached with the industry in July 2026 on a National Tote, with a launch targeted during Spring Racing Carnival 2026. The company noted the launch remains subject to remaining regulatory approvals.

The presentation set out the intended benefits of the reinvigorated tote:

• Bigger pools

• Global liquidity

• Jackpot-style products, such as Megapot

• A simpler single tote odds display

• Unique bet types

The BetMakers acquisition and Tabcorp’s growth roadmap

Tabcorp outlined the strategic acquisition of BetMakers, referencing its ASX announcement dated 10 August 2026. The transaction is targeted for completion during 3Q FY27, subject to certain conditions.

Tabcorp set out the strategic rationale and financial targets for the transaction:

• Targeting $30M of cost synergies

• Double-digit EPS accretion expected from Year 3

• Pro forma leverage of 1.6x at June 2026, assuming 25% scrip take-up and excluding synergies

Strategically, the presentation positioned the transaction as a transition to a modern, cloud-native wagering technology stack, the establishment of a global B2B growth engine, and faster speed to market at lower cost.

For investors wanting to understand the full strategic and financial case behind the transaction, our BetMakers acquisition deep dive covers the contracted revenue profile, synergy targets, approval conditions, and balance sheet implications in detail.

On media, Tabcorp highlighted a range of domestic and international broadcast rights secured during the year and continued diversification of media revenue, with international export revenue of $139M representing 37% of media revenue.

Balance sheet strength and what is ahead for FY27

The presentation detailed a strengthened funding position, with reported leverage of 1.2x and net debt of $533M at 30 June 2026.

Funding and liquidity highlights included:

• Undrawn facilities and unrestricted cash of $1,161M

• Priced $300M of 5.5-year notes under a new Australian Medium-Term Note (AMTN) Programme

• Extended its A$980M syndicated term loan facility on improved pricing terms

• Weighted average drawn debt maturity of 4.9 years, up from 4.3 years

Looking ahead, Tabcorp provided the following guidance for FY27:

• Domestic wagering turnover growth expected to be broadly consistent with FY26, excluding the FIFA World Cup

• Opex growth expected in line with general inflation of 3.0-3.5%

• Capex expected up to $160M; D&A expected in the range of $225-235M

• FY27 EBITDA expected to benefit from Next-Gen terminal investment and Phase 2 retail model changes

What FY26 means for Tabcorp investors

The FY26 result presents a turnaround narrative in which operating leverage, capital discipline and dividend growth have converged. Earnings grew well ahead of revenue, leverage fell to 1.2x, and the dividend increased 50%, all while the company progressed two near-term strategic catalysts.

Those catalysts, the National Tote launch targeted for Spring Racing Carnival 2026 and BetMakers completion targeted for 3Q FY27, both remain subject to regulatory approvals and completion conditions respectively.

Tabcorp’s stated strategic direction (2026-2028)

The company’s “Deliver Strategic Differentiation” phase targets growth from its unique set of assets and differentiated customer offer, financial discipline and operating leverage, and strong shareholder returns.

For investors, FY26 leaves Tabcorp with reduced leverage and two potential growth levers, though the ultimate contribution of each remains dependent on approvals and conditions being satisfied.

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