Tabcorp Holdings has provided a trading update amid the COVID-19 pandemic. The operator has predicted that the pandemic will reduce the value of its business by between AU$1bn (US$710m) and AU$1.1bn by the end of the year.
Tabcorp said the losses relate to its Wagering and Media and Gaming Services businesses, which has been impacted by a number of COVID-19 related factors. Among this list of factors are the contraction of retail business as a result of the pandemic and the potential decline in consumer confidence and increased economic uncertainty.
As the impairments are non-cash, the operator has said they will not impact the company’s financial covenants with its lenders.
Tabcorp has also forecasted EBITDA and net profit declines. The operator expects EBITDA to be in the range of AU$990m to AU$1bn, a maximum decline of 12% year-on-year. Tabcorp predicts its net profit after tax will be in the range of AU$267m to AU$273m, a maximum drop of 33%.
David Attenborough, Tabcorp’s managing director and CEO, said: “COVID-19 has materially impacted our Wagering & Media and Gaming Services businesses.
“We are facing into a challenging and uncertain environment, and the current operating conditions and those expected into the future are relevant factors in assessing the value of the goodwill in those businesses at this time.”