Tabcorp Holdings Ltd

TAH: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$4.10	Tgs	Qrwkfhqd

Tabcorp Earnings: Costs Contained and Wagering Share Increased

Angus Hewitt

Aug 24, 2023

We raise our fair value estimate for no-moat Tabcorp by 5% to AUD 1.10 per share following fiscal 2023 results. Underlying EBIT more than doubled from pro forma fiscal 2022 (excluding the now-demerged Lottery Corp) to AUD 151 million, about 1% ahead of our forecast. Tabcorp rebounded strongly from COVID-19 closures in fiscal 2022, which weighed on TAB wagering and revenue linked to electronic gaming machines. The valuation uptick reflects increased confidence in the company's cost-out program and the time value of money.

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