Tabcorp Holdings Limited (Tabcorp) has provided an update on the impact of COVID-19 on its operations.
Tabcorp has temporarily closed its Australian licensed venues and TAB agencies which offer Tabcorp’s Wagering & Media, Keno and Gaming Services products. The closure follows the Prime Minister’s announcement to close certain types of venues to combat the spread of coronavirus.
The convenience stores and other such outlets, which distribute Tabcorp’s Lottery products, are not covered by the measures and will remain open. It is expected that newsagencies, which also distribute Tabcorp’s Lottery products, will remain open but is not yet confirmed.
Tabcorp notes that many national governments and sporting bodies have announced the cancellation and/or postponement of major sports events. Thoroughbred, harness and greyhound race meetings in Australia are currently still being conducted with restrictions on public attendance and otherwise in accordance with social distancing rules.
David Attenborough, Tabcorp’s Managing Director and CEO, said:
“The health and safety of our people, our partners and the community are our priority at this point in time.”
“We are working with governments, regulators, and our venue and racing industry partners to manage the impact on them, our customers and our businesses during this unprecedented period.”
“We recognise how difficult this situation is for our people, our industry partners and the community, and we are committed to using the strength of our business model and our enduring partnerships to come through this stronger, together.”
“We have implemented our business continuity plans and have maintained continuity of service, even with the vast majority of our employees now operating remotely.”
“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.”
In 1H20, revenue from Australian licensed venues, TAB agencies and on-course outlets accounted for 28% of Tabcorp Group revenues and Sports betting revenues accounted for 4% of Tabcorp Group revenues.
Given this evolving situation, and the high level of uncertainty regarding the impact of COVID-19 on the Group in FY20 and, likely, FY21, Tabcorp is not currently in a position to provide specific guidance on earnings or financial impacts.
Tabcorp 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.