Tabcorp Lifts FY26 Earnings as McLachlan Backs Australia’s Ad Reforms

Tabcorp chief executive Gillon McLachlan has thrown his support behind Australia’s newly passed gambling advertising restrictions.

The comments accompanied [Tabcorp’s FY26 results release], lodged with the ASX.

McLachlan, the former AFL boss now midway through a turnaround of the TAB operator, framed the advertising package (passed by Parliament on August 19, 2026, and starting largely from January 1, 2027) as a manageable set of changes for a business whose revenue base is anchored in racing media, retail venues and account wagering rather than free-to-air sports spots.

Racing Carve-Out Softens the Blow for Tabcorp

The reform package, detailed by the Prime Minister’s office, caps gambling advertising on broadcast television at three ads per hour between 6am and 8.30pm with a complete ban during live sport in those hours, bans radio gambling ads during school drop-off and pick-up windows, bars celebrities and athletes from gambling promotions, and removes wagering branding from sports venues and playing uniforms. Online gambling ads will be restricted to logged-in adults who can opt out.

Two features of the package matter more to Tabcorp’s P&L than the headline bans. Dedicated racing programming, channels and online racing services sit outside the prohibitions, leaving the SKY Racing broadcast engine, which generated $377.8 million in media revenue in FY26, up 1.9%, largely intact. And sponsorship arrangements already under contract can run to December 31, 2031 under transitional provisions, a phase-in Gaming.net covered in Australia Reforms Ban Sports Gambling Ads, But From 2031 Onwards. Within Tabcorp’s media segment, TV and radio ad sales contributed $44 million, 12% of segment revenue, per the [FY26 investor presentation].

The Numbers Behind the Turnaround

• Group revenue: $2,636.3 million, up 0.8% on FY25
• Group EBITDA before significant items: $431.7 million, up 10.3%; margin up 140 basis points to 16.4%
• NPAT before significant items: $71.1 million, up 43.6%; statutory NPAT of $46.3 million
• Full-year dividend: 3.0 cents per share, up 50%, a 58% payout of adjusted EPS
• Net debt: $533 million at June 30, 2026; reported leverage of 1.2x against a target of under 2.5x
• Domestic wagering turnover: $13,861.4 million, up 0.9%, with sport turnover up 8.3% and racing down 1.1%

The earnings lift came from cost control and licence reform rather than top-line growth. Underlying operating expenses fell 0.8%, and the Wagering and Media division ($2,454.7 million of revenue) grew EBITDA 9.9% to $361.8 million, helped by a full year of the reformed Victorian Wagering and Betting Licence and $22 million of incremental EBITDA from the first phase of a new retail commercial model, now live across more than 3,300 venues representing 97% of network turnover. Integrity Services, which monitors 127,600 electronic gaming machines across four jurisdictions, lifted EBITDA 12.0% to $69.9 million.

What McLachlan Is Building Next

The results land sixteen days after Tabcorp announced its agreed acquisition of wagering technology provider BetMakers, a deal the FY26 release says targets a $30 million run-rate of cost synergies by the end of year two, EPS accretion from year two and double-digit accretion from year three, with pro forma leverage of 1.6x. Completion is targeted for the third quarter of FY27.

Closer to home, the company reached industry agreement in July 2026 on a National Tote, with launch targeted for the Spring Racing Carnival subject to remaining regulatory approvals and a marketing campaign set for September 2026. Its TAB LIVE in-play product has clearance from the federal communications regulator and authorities in New South Wales, Victoria and Queensland, and was operating in more than 100 retail venues in August 2026.

What Happens Next for Tabcorp in FY27

The final dividend goes ex on August 31, 2026, with payment on September 22, 2026. For FY27, Tabcorp guided to domestic wagering turnover growth broadly consistent with FY26 excluding the FIFA World Cup, opex growth held to general inflation of 3.0–3.5%, capital expenditure of up to $160 million, including roughly $65 million for next-generation retail terminals, and depreciation and amortisation of $225 million to $235 million. The company also noted it continues to cooperate with AUSTRAC’s ongoing investigation while investing in its financial crime capability.

EVENT_TIME note: lodged to ASX 2026-08-25T22:47:00Z (August 26 AEST), per the ASX announcements API.