How did the Tabcorp (ASX:TAH) share price respond last earnings season?

Tabcorp’s due to release its FY21 report tomorrow. Here’s how its shares responded last year.

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The Tabcorp Holdings Limited (ASX: TAH) share price had an average day yesterday, finishing the session trading at $4.93. That represents a drop of 0.8% – relatively representative of the broader market.

The S&P/ASX 200 Index (ASX: XJO) fell 0.61% yesterday, as did the All Ordinaries Index (ASX: XAO).

Tabcorp’s movements yesterday might’ve been impacted by the anticipation of its full-year results, set to be released tomorrow.

And while the market waits to see how the gambling entertainment group performed over the financial year 2021, let’s take a look at how the Tabcorp share price responded to the company’s financial year 2020 results.

Tabcorp’s FY20 results

Tabcorp released its last set of financial year results to the market on 19 August 2020, along with news of a $600 million capital raise.

As part of the capital raise, the company offered its shareholders the option to purchase 1 new Tabcorp share for every 11 shares they already held at a purchase price of $3.25 apiece.

The $600 million equity raise followed the company FY20 results, which included a net profit after tax loss of $870 million. Tabcorp’s FY20 report also included:

The company’s Lotteries & Keno business was its strongest segment. It brought in $2,917 million in revenue.

Tabcorp’s wagering and media segment saw $2,084 million in revenue, 10.1% less than FY19.

Due to the capital raise, the Tabcorp share price was frozen when it released its results. When the market could finally react on 24 August, the Tabcorp share price slipped 0.2%.

What’s driven the Tabcorp share price since?

In Tabcorp’s half-year results, it reported its Lotteries & Keno segment was its strongest business once again. Tabcorp’s other segments reported revenue declines.

However, the Tabcorp share price gained 5.6% on the back of its half-year results.

Tabcorp has also recently fended off a takeover offer from BetMakers Technology Group Ltd (ASX: BET).

However, the offer was taken off the table when Tabcorp announced its plans to demerge its Lotteries & Keno business.

The demerger is expected to go ahead in the middle of next year. That may mean Tabcorp’s wagering and media business could be the main focus of its FY21 results tomorrow.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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