Australia's Tabcorp rallies after interim profit jumps more than expected (updated)

Tabcorp Holdings

25/02/2026 05:38

Recasts paragraph 1, adds details from paragraph 5

Feb 25 (Reuters) - Australian gambling firm Tabcorp TAH.AX reported a bigger-than-expected 62% jump in first-half earnings on Wednesday, driven by improving betting activity and cost management, sending its shares soaring nearly 24%.

Tighter capital management and a boost from Tabcorp’s reformed Victorian wagering licence also supported the profit growth.

The Victoria-headquartered company logged A$35.7  million ($25.31 million) in net profit attributable before significant items for the first half ended December 31, above Visible Alpha's A$25.07  million consensus and last year's A$22.1  million.

Shares of the betting firm rose 23.5% to A$1.050 in their sharpest daily surge since August  27, topping the ASX200 leader board, while the benchmark index .AXJO hit a record high.

Group revenue was flat at A$1.34 billion, while earnings before interest, tax, depreciation and amortization climbed 14.3% to A$217.4 million, as the company squeezed costs and reaped the full benefits of its reformed Victorian wagering licence.

The licence, which came into force in August 2024, granted Tabcorp exclusive rights to run retail and tote wagering across Victoria.

It also replaced the former joint‑venture model with the state’s racing industry, giving the company modernised terms and a level-playing field with online bookmakers.

The company said it expects wagering turnover conditions in the second half to be broadly similar to the first six months. It flagged around A$5 million in additional advertising costs tied to the 2026 FIFA World Cup.

Tabcorp declared an interim dividend of 1.5 Australian cents per share, up from 1 cent declared for the previous year.

($1 = 1.4106 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru; Editing by Janane Venkatraman and Subhranshu Sahu)

 ((tanishk.Kumar@thomsonreuters.com; X: @thatstanishk))