Treasure Chest | Jun 03 2025
FNArena's Treasure Chest reports on money making ideas from stockbrokers and other experts.
By Mark Woodruff
Whose Idea Is It?
Morgan Stanley
The subject:
Australia's largest multichannel wagering brand, Tabcorp Holdings ((TAH)).
Morgan Stanley sees upside risk to FY26 earnings for Tabcorp Holdings, citing good positioning to improve retail profitability through changes to venue commission structures and targeted product innovation.
A strategic pivot is underway to enhance monetisation in the retail network, notes the broker, including reducing commissions paid to pubs and clubs and reinvesting within the existing cost envelope rather than recycling savings into unrelated areas.
More info:
Analysts at Morgan Stanley suggest as Tabcorp's promotional spending and capex are redirected to support in-venue activity, underperforming venues may be impacted more acutely, especially with the likely introduction of minimum turnover thresholds.
Further investment in the network will be complementary to the existing upgrade program which has been undertaken across high performing TAB venues in New South Wales, Victoria, and Queensland.
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