Wagering giant Tabcorp (ASX:TAH) has reported a 14.2% slide in statutory net profit to $21.7 million for the half-year ended Dec. 31, 2025, weathering a challenging period marked by inflationary pressures and an unusual streak of punter wins.
Despite the dip in bottom-line profit, the group managed a 1% lift in revenue to $1.3 billion, defying lower domestic wagering yields experienced during the peak Spring Racing Carnival and AFL/NRL finals series.
The result slightly exceeded analyst expectations of $20.8 million.
When stripping out significant items—including transformation costs and Victorian licensing adjustments—underlying profit actually surged 61.5% to $35.7 million.
CEO Gillon McLachlan praised the business's resilience, noting that while the "low yields" from September to mid-November 2025 hampered margins, the company delivered double-digit earnings growth on an underlying basis.
McLachlan emphasised that while the business is not yet at its ultimate goal, it remains "relentless" in executing its turnaround strategy.
The board declared an unfranked interim dividend of 1.5 cents per share, an increase from the 1 cent payout recorded during the same period last year.
The capital return reflects management's confidence in the group’s "greater depth" and its ability to offset the structural costs associated with its ongoing business transformation.