Australian racing and wagering giant Tabcorp says it suffered a 5.7% decline in group-wide revenues for the three months to September 2020, impacted by COVID-19 and the subsequent closure of venues across the country.
The trading update formed part of an investor presentation at the company’s AGM on Tuesday, with Managing Director and CEO David Attenborough revealing the slight 5.7% decline was mainly felt in its Gaming Services segment which fell 55.2% on the closure of licensed venues.
Lotteries and Keno revenue was down 6.9% year-on-year with Wagering and Media down 2.9%.
Exact revenue figures were not provided with Tabcorp only publishing official financial results twice a year, however the company previously reported revenues of AU$2.91 billion (US$2.05 billion) for the six months to 31 December 2019, with net profit after tax of AU$198.8 million (US$140.1 million), and EBITDA of AU$596.5 million (US$420.4 million). All had represented increases over the same period in 2018.
“The duration and severity of COVID-19 is unclear, however Tabcorp remains well placed with our resilient, diversified earnings base and strengthened balance sheet,” Attenborough said.
He also revealed that Tabcorp had completed the migration of UBET account customers into Tabcorp’s TAB platform in the recent quarter as part of the integration of Tabcorp and Tatts, who underwent an AU$11 billion merger in 2017.
The integration is on track to deliver AU$95 million (US$67 million) in “total cost synergies” by the end of the 2021 financial year, Attenborough said, with AU$86 million (US$60.6 million) delivered to the end of FY20.
Tuesday’s AGM also saw David Gallop and Anne Brennan, who were appointed to the Tabcorp board in July, officially elected as new directors of the company with Ziggy Switkowski and Vickki McFadden stepping down.