It will take more than winning Everest, the world’s richest horse race, to revive Tabcorp’s fortunes. The gambling giant needs some wins off the track.
But after a tough year – which saw investors collectively torch a billion dollars on their investment in the group, while losing their chairman and chief executive – there would have been nothing sweeter than watching their own horse, Bella Nipotina, win the world’s richest race on turf at Sydney’s Randwick Racecourse last month.
The trick is to weave together a compelling business out of a shrinking wagering business, largely run through a tired network of TAB shops and pub outlets, an underperforming betting app, and a media business that broadcasts 150,000 races live each year.“It was a great thrill for the company to win on Saturday, but it was a great, integrated end-to-end day,” McLachlan said after Tabcorp’s recent AGM.
The noughties heralded a new breed of gambling operator focused on sports betting. The market exploded as young punters moved the main betting game from traditional wagering on thoroughbred horses to fixed odds betting on sports that were traditionally watched purely for enjoyment. Group revenue dropped thanks to a shrinking wagering business as punters got crunched by the cost-of-living crisis, as costs continued to rise. But it was $1.4 billion worth of writedowns, mostly related to its wagering business in NSW, that saw it report a loss for the year. Tabcorp shares have dropped about 40 per cent since the start of the year.
With the cost base under control, investors can then expect clarity on his grand vision with the first half results in February.Even McLachlan admits that a lot of the hard work has been done by his predecessor, Adam Rytenskild, whose abrupt exit is still playing out in the courts. Just as important was Victoria’s decision to increase the point-of-consumption tax to 15 per cent to match NSW, Western Australia, South Australia and Tasmania. This was hailed as a win for both Tabcorp and state racing industries – which had long called for the levelling of taxes paid by the TAB operator and online bookmakers.
“Pubs are back big time,” McLachlan told investors and analysts after the full-year results in August.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Can former AFL boss Gillon McLachlan turn around Tabcorp’s fortunes?It will take more than winning Everest, the world’s richest horse race, to revive Tabcorp’s fortunes. The gambling giant needs some wins off the track.
Read more »
Massive profit: Loss of AFL funds marks Carlton’s return as an AFL powerhouseSet to announce a massive profit, the Blues will join four other power clubs who do not receive additional funding from the AFL.
Read more »
Massive profit: Loss of AFL funds marks Carlton’s return as an AFL powerhouseSet to announce a massive profit, the Blues will join four other power clubs who do not receive additional funding from the AFL.
Read more »
‘Tested patience’: Fresh details behind bold Dees move - and SECOND secret Cats chatAFL: AFL 360 discuss what the best move for Clayton Oliver and Melbourne.
Read more »
Lions coach Chris Fagan takes AFL premiership cup out for a walk in suburban BrisbaneLions coach Chris Fagan has been spotted doing 'the most Brisbane thing ever' after taking the AFL premiership cup out during his morning walk for a coffee.
Read more »
‘Told not to come’: Departed star’s B&F snub as Saints boss slams AFL draft systemAFL: Saints President Andrew Bassat didn't mince words during his club's best & fairest night, slamming the current draft system
Read more »