Tabcorp share price flat following mixed FY19 release

Earnings alone are usually not enough.

Indeed, Tabcorp Holdings Ltd (ASX: TAH) barely saw its share price budge when it reported its FY19 results today – even though it saw its revenue and earnings both rise.

Investors responded with a lukewarm shrug: with Tabcorp’s share rising just 0.69% by the time the market closed.

Revenue and earnings gain ground

When Tabcorp Holdings Ltd reported its 2019 earnings today, the company reported good – but not spectacular growth.

On the revenue front, Tabcorp posted sales of A$5,482 million – up 8.7% from the year prior.

Earnings (EBITDA) also grew, clocking in at A$1,064 million for FY19 – an increase of 7.4%.

Speaking of Tabcorp's 2019 results, the company's Managing Director and CEO, David Attenboroug said:

'Tabcorp delivered a strong group result in the first full year of the combined Tabcorp and Tatts business, reflecting the compelling logic of the combination and the benefits of diversification and scale.'

The gambling company has also modestly increased its dividend in 2019, reporting a full-year dividend of 22.0 cents, including a fully-franked final dividend of 11.0 cents.

Overall, this represents a dividend increase of 4.8% on a year-over-year basis.

Digital growth charts a course forward

As we mentioned in our Tabcorp earnings preview, the gambling giant continues to witness impressive growth from its digital initiatives.

For example, in FY19, lotteries and wagering digital turnover both rose 73.5% and 7.7%, respectively.

Tabcorp additionally reported that a brand new omni-channel model is currently ‘being rolled out with Lotteries' retail partners, subject to regulatory approval.’

Tabcorp share price: a ‘strong’ outlook

Investors are constantly torn between what a company projects will happen and what actually ends up happening.

Indeed, even though Tabcorp was faced with a cold shoulder today, its mid-term outlook, at the very least, appears stable.

Speaking of the Tabcorp-Tatts partnership that we touched on above, CEO David Attenborough commented that the company has:

‘Created a strong and diversified portfolio of high-quality businesses across Lotteries & Keno, Wagering & Media and Gaming Services,’ with Mr Attenborough continuing that, ‘our businesses have a clear set of priorities to build on their competitive advantages and drive long-term profitable growth.’

Tabcorp Holdings Ltd's final dividend is set to be paid on September 20.

Even with today’s FY19 results, year-to-date Tabcorp (ASX: TAH) has still only risen 3.7%.