Tabcorp Holdings' response to ASX regarding financial year 2024 earnings

Tabcorp Holdings Limited (TAH) has responded to ASX's letter dated 2 September 2024, addressing the company's financial year 2024 (FY24) earnings. The response provides detailed information regarding the company's statutory and underlying earnings, market expectations, and the impact on the price or value of TAH's securities.

Executive commentary on financial year 2024 earnings and market expectations

TAH did not publish earnings guidance for FY24. The company considers EBITDA and EBIT as the key metrics for assessing its earnings performance, and it does not believe that the earnings information differed materially from the market's expectations. TAH's statutory NPAT for FY24 incorporated non-cash impairment charges, resulting in a significant variance from analysts' estimates. However, TAH does not consider this to be market sensitive, given the focus on revenue, EBITDA, and EBIT by investors and the non-cash nature of the impairment charges.

Summary of Tabcorp Holdings' response and outlook

Tabcorp Holdings' response to ASX provides insights into the company's assessment of its FY24 earnings and market expectations. The company's engagement with market participants supports the view that the reported earnings did not constitute a 'market sensitive earnings surprise.' TAH's focus on revenue, EBITDA, and EBIT as the primary metrics for assessing its performance, along with the non-cash nature of the impairment charges, led the company to conclude that the reported statutory NPAT did not have a material effect on the price or value of its securities. The company remains in compliance with the Listing Rules and has confirmed that its responses have been authorized in accordance with its continuous disclosure policy.