Australia’s Lottery and Gambling Operator Giant, Tabcorp is busy finalizing the financial performance of the last fiscal year which ended on June 30. The operator however has no anticipation of good news. Like many other operators around the world, Tabcorp has also been hit severely by the COVID19 pandemic and the Great Lockdown. However, some spikes in certain areas of Australia aren’t helping the operator in any way now. The company understands that the new fiscal year is going to be even more challenging.
As per the early estimates of Tabcorp, the net profit of the company for the fiscal year would be around US$189.97 to US$194.24. However, this is a substantially lower figure than $281.5mn recorded in the prior fiscal year. The impact could be seen even in the EBTIDA as well. The EBITDA is expected to be around $710mn as compared to $796.88mn in the prior fiscal year.
Tabcorp CEO and Managing Director, David Attenborough, said in a financial forecast that the coronavirus has impacted the wagering and the media and the gaming services of the company. He said that they are navigating through a challenging time.
The current operating conditions and the future conditions of the industry would decide the goodwill of the business.
However, he believes that the rebound is coming. He said that a diversified portfolio of assets is the strength of the Tabcorp and he said that the integration is now completed. He reiterated that they are supporting the partners and the people during a tough time.
However, Attenborough would not be around for the recovery of the Tabcorp. He is exiting the company, with Chair Paula Dwyer and non-executive director Steven Gregg. As per the reports, these changes come after a push from the shareholders who are not confident of the leadership anymore. Dwyer is expected to relinquish sometime this year and Attenborough would sail the ship for Tabcorp only till the first half of next year.
Tabcorp also needs to digest non-cash goodwill impairment charges of around $711.6mn for the financial year. The weak performance of the company is said to be due to the pandemic. The book value for the goodwill segment is now just over $2.09bn.