Own Tabcorp shares? Here’s the company’s plan to step up against the competition

Tabcorp Holdings Limited (ASX: TAH) has outlined how it plans to compete with some of its online rivals.

Tabcorp shares are currently jumping 0.95% and are trading at $1.06. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.41% today.

Let’s take a look at what Tabcorp is planning.

Tabcorp plans

Tabcorp is planning to create a new app in time for the Spring Racing season to compete with some competitors, according to the Financial Review.

The company’s CEO Adam Rytenskild reportedly wants to compete with online gambling competitors including Sportsbet and Ladbrokes. In comments cited by the publication, he said:

There’s still too many people on blue and red apps … sitting in pubs

Rytenskild was appointed as the managing director and CEO from 1 June 2022 on a fixed salary including super of $1.5 million.

This followed the company offloading Lottery Corporation Ltd (ASX: TLC). Rytenskild has more than 20 years of experience in the betting entertainment industry.

In a recent investor day presentation, Tabcorp said 65% of turnover is digital. However, the company has about 25% of the digital market share. The company has 641,000 active users and is found in more than 4,000 venues in Australia.

Of the company’s total bettors, 60% bet digitally as well as in venues known as “omni-channel bettors”.

Tabcorp said these customers are approximately “2 times more valuable than digital only customers, adding:

They engage more frequently and are less subject to churn.

As my Foolish colleague Sebastian reported today, Tabcorp was one of the highest yielding ASX dividend shares in the 2022 financial year.

The company provided a fully franked dividend of 13.5 cents per share during the financial year.

Tabcorp share price snapshot

Tabcorp shares have gained 14% in the past year, while it is up nearly 11% year to date.

In contrast, the ASX 200 has shed nearly 10% in a year.

The company’s share price has jumped about 32% in the past five years.

The post Own Tabcorp shares? Here’s the company’s plan to step up against the competition appeared first on The Motley Fool Australia.

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• Are potential suitors getting ready to take another punt on the Tabcorp share price?

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