Australian entertainment group Tabcorp Holdings, announced that it will score its betting and media business at about 605 million (AUD 1 billion), due to device closings by covid-19 and “possible acceleration of minor contraction.”
During its presentation on Monday to the ASX Exchange, the company said it did an “asset review” for which it plans to incur amortization of between $ 1 billion and $ 1.1 billion, after financial results for the year ended June 30 of this year.
The company posted a net profit for the 12 months ending June 30 of $ 267 million to $ 273 million, excluding non-monetary goodwill impairment charges. This represents a 31% drop in net income of $ 396 million obtained in 2019.
The operator estimates that earnings before interest, taxes, depreciation and amortization (EBITDA) is between $ 990m and $ 1,000m. Below the $ 1.12 billion business ended in 2019, according to unaudited preliminary results for the year ended June 30, 2020.
The announced amortization is based on the “potential decrease in consumer confidence and the increase in economic uncertainty” as a consequence of the coronavirus pandemic. Also because of “the potential acceleration of retail contraction and uncertainty regarding longer-term damage as an indirect result of the pandemic.”
“COVID-19 has materially impacted our gaming and media and gaming services businesses,” said Tabcorp Managing Director and CEO David Attenborough.
“We face a challenging and uncertain environment, and current and expected future operating conditions are relevant factors in assessing the value of goodwill in those businesses at this time,” he added.
Attenborough noted that the company continues “to rely on the strength and resilience of Tabcorp’s diversified portfolio of assets and we are pleased that the integration is now fully complete.”
“We are focused on supporting our people and partners during these difficult times, while making sure that Tabcorp emerges strongly after COVID-19,” he concluded.
David Attenborough resigned from his post last week following pressure from shareholders about the company’s performance.