(AI video summary)
This video was created on 25 February 2026 for IG audiences by ausbiz.
ASX code: TAH
Tabcorp shows strong stock performance amid challenges
Tabcorp Holdings Limited surged as one of today’s top performers, with shares rising 17% by noon in Sydney. Despite an unfranked interim dividend of 1.5 cents per share, Tabcorp stated it is unlikely to frank dividends soon. First-half revenue increased by 1% to $1.3 billion, while profit fell 14.2% to $21.7 million. The company projects capital expenditure (capex) for financial year (FY) 2026 to be between $120 million and $140 million.
Turnaround strategy under new leadership
Tabcorp’s performance is credited to strategic changes under new leadership, including restructuring and cost-cutting aimed at growth. Analysts note that although Tabcorp is not currently in their portfolios, the turnaround presents a high-risk, high-reward scenario.
Investment outlook
Analysts highlight Tabcorp’s profit volatility, with swings from $40 million losses to $6.8 billion profits. As a result, some prefer stable options like Jumbo Interactive, noted for its software focus, higher returns, no debt, and a lower price-to-earnings (P/E) ratio compared to Tabcorp’s approximate 55.