Tabcorp has reported a loss of $636.8 million, primarily due to a significant cash impairment in its wagering and media division caused by a decrease in gambling activity and higher tax rates.

The company’s overall revenue declined by 5 percent to $1.2 billion, while group earnings saw a 14 percent decrease to $170 million, underscoring the challenges confronting the Australian wagering sector.

Adam Rytenskild, Tabcorp’s CEO, noted that the company’s transition to digital platforms is progressing as planned, with an increase in total market share compared to the previous reporting period. He highlighted positive outcomes resulting from strategic investments in product development, brand enhancement, data analytics, technological advancements, and retail initiatives.

A significant portion of the reported loss, amounting to $731.9 million, is attributed to a downturn in wagering activity influenced by factors such as inflation, rising interest rates, and tax rate hikes in New South Wales.

Revenue from Tabcorp’s primary segment decreased by 4 percent to $1.1 billion, with earnings before interest, tax, depreciation, and amortization (EBITDA) dropping by 13 percent to $134 million.

The company disclosed that revenue was down by 3.9 percent in January, correlating with a 5.4 percent decline in wagering turnover.

To finance the initial $600 million betting license for Victoria, Tabcorp intends to utilize its existing debt facility. Additionally, the company declared an interim dividend of 1 cent per share, fully franked, reflecting its commitment to shareholder returns.

*Existing customers only. 2nd Racing bet. Excl SA & WA. T’s & C’s apply. Gamble responsibly.