Gambling giant Tabcorp is aiming to grab 30 per cent of the digital wagering market by the end of 2025 after posting better-than-expected numbers for the first half of fiscal 2023, despite penny-pinching punters and increased competition.

ASX-listed Tabcorp, valued at 2.4 billion, on Tuesday posted net profit after tax of $52 million for the six months to December 31, beating market expectations of $40 million. Revenue for the period increased by 11 per cent to $1.2 billion, while earnings rose 24 per cent to $197 million.

While it continues to invest heavily in its digital wares, Tabcorp’s latest numbers were buoyed by a 58 per cent jump in cash wagering revenue following the end of COVID-19 restrictions. Tabcorp’s digital betting turnover fell from $5.26 billion last year to $4.92 billion despite increasing its active digital wagering users by 17,000 to 797,000.

Tabcorp chief executive Adam Rytenskild said he was pleased the company had managed to retain digital market share for the first time since 2019. He also took a shot at Tabcorp’s rivals, issuing a bleak view on the long-term viability of News Corporation backed competitor Betr.

“If you’re making a loss today and focussing on turnover share rather than profit, it’s unlikely you’re ever going to make a profit. I can’t see how some of these smaller competitors will stay in the market,” he said.

Gambling entrepreneur Matthew Tripp launched rival new wagering group Betr during the spring racing season last year by offering 100-1 odds for bets up to $10 on any horses racing in the Melbourne Cup, causing hundreds of thousands to flock to the new entrant. Betr recently put in an undisclosed offer to take over the Australian business of another Tabcorp rival, PointsBet.

“I’m not bullish about Tabcorp because of what they’re doing. I’m bullish on Tabcorp because of what we’re doing,” Rytenskild said.

Tabcorp’s share price jumped 4 per cent on Tuesday to $1.04. The group announced a fully franked interim dividend of 1.3¢ a share, which will be paid on March 21.

JP Morgan lowered its share price target to 85¢ from $1 after the update. The private equity group’s analysts said they were unsure what value was in the continuing business given the inclusion of the now-sold eBet division and an $11 million insurance payment benefit in the results.