Tabcorp has smashed profit estimates as Australians wagered away more of their earnings post-COVID.
The nation's largest gambling company on Tuesday posted $52 million in net profits for the half ending December 31, beating consensus expectations by 30 per cent.
Revenue was up 11 per cent to $1.275 billion, while earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 24 per cent to $197m.
The strong result was driven by a 58 per cent increase in cash wagering revenue as punters returned to retail venues following lockdowns.
"Our business has rebounded strongly from a COVID-impacted first half last year to experience strong growth in group revenue and EBITDA," chief executive Adam Rytenskild said.
"The COVID lockdowns presented an opportunity for digital-only operators, but our retail customers have quickly returned and our digital transformation is amplifying that opportunity."
During the past half-year, Tabcorp launched its new TAB digital gaming app as it seeks to grow its online gambling presence.
Mr Rytenskild announced a target of 30 per cent digital revenue market share by financial year 2025, as part of the company's push to see off new entrants in the market.
TAB held its digital revenue market share at 25.1 per cent for the half despite the entry of News Corp-backed Betr and its "highly distortionary promotional offers".
Tabcorp's increased focus on digital wagering follows the spin-off of its lotteries and keno business in 2021.
"The demerger has been seamless and the separation from the Lottery Corporation remains on track," Mr Rytenskild said.
The company will also attempt to slash operating costs by $20m to $60m over the next three years.
Despite the ever increasing quantities of gambling losses funnelling into Tabcorp's coffers, Mr Rytenskild was at pains to express his company's civic-mindedness.
"Caring for our customers and the community are even more important to us as an organisation as we execute our transformation," he said.
"We work in an industry where there are high expectations for compliance and to be responsible. We meet those expectations with transparency and with a genuine aim to do the right thing."
The company declared an interim dividend of 1.3c per share, fully franked.
Tabcorp's share price climbed three per cent to $1.03 shortly before noon AEDT.
