Australian racing and wagering giant Tabcorp says it is taking measures to mitigate the impact of COVID-19 on its 2H20 finances by reducing capital expenditure and prompting customers to use digital alternatives to available products.
Issuing a response statement to the Australian government’s shutdown of all non-essential services, implemented as of midday on Monday, Tabcorp noted that it remains one of the country’s few gaming operators still able to offer services via its lottery products – available in newsagencies – and global racing coverage.
Nevertheless, 28% of Tabcorp’s 1H20 revenue came from TAB agencies and on-course outlets and another 4% from sports betting, representing almost a third of all revenue for the period.
With all casinos, pubs, clubs and other licenses venues shut as of Monday, Tabcorp said it is “not currently in a position to provide specific guidance on earnings or financial impacts,” but is “seeking to partially mitigate the impact of these changes by reducing operating and capital expenditure where it reasonably can, encouraging retail customers to use digital alternatives and actively promoting remaining available products.”
Tabcorp has undrawn banking facilities of AU$600 million and an AU$171.5 million private placement maturing in December 2020, but said it has no other debt maturities until April 2022.
“We have implemented our business continuity plans and have maintained continuity of service, even with the vast majority of our employees now operating remotely,” said Tabcorp’s Managing Director and CEO, David Attenborough.
“Despite the impact of these changes in licensed venues and, potentially, TAB agencies, we continue to offer customers Wagering & Media and Keno products through our digital channels.”
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