• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Tuesday 13 May 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

Tabcorp launches AU$600 million entitlement offer after falling to AU$870 million loss in FY20

Ben Blaschke by Ben Blaschke
Thu 20 Aug 2020 at 04:03
Tasmania becomes sixth Australian state to introduce point of consumption tax on wagering revenues
19
SHARES
477
VIEWS
Print Friendly, PDF & Email

Australian racing and wagering giant Tabcorp has announced an AU$600 million (US$431 million) entitlement offer aimed at paying off bank debt and strengthening the company’s balance sheet in the midst of COVID-19.

The entitlement offer, announced on the same day as the company released its FY20 financial results, comes with certain provisos including a reduction in Tabcorp’s target dividend payout ratio to between 70% and 80% of net profit after tax. No dividend will be paid for the year ended 30 June 2020.

“The continued significant uncertainty regarding the severity and duration of the COVID-19 impact has led Tabcorp to reconsider its previous capital management targets in order to improve its credit metrics and conserve more capital over time,“ said Tabcorp Managing Director and CEO, David Attenborough.

“The entitlement offer proceeds will be used to pay down existing drawn bank debt facilities and support the move towards the revised target gearing range. This is expected to strengthen Tabcorp’s balance sheet, provide greater financial flexibility in uncertain times and provide additional credit metric headroom for covenant and rating purposes.”

Tabcorp reported a 4.8% decline in group-wide revenues to AU$5.22 billion (US$3.75 billion) and 11.5% fall in EBITDA to AU$995 million (US$715 million) in FY20, falling to a loss of AU$870 million (US$625 million) on the back of goodwill impairment charges of AU$1.09 billion (US$783 million).

The results included a 1.8% increase in Lotteries and Keno revenue to AU$2.92 billion (US$2.10 billion) with 3.7 million Australians now registered lottery users – up 400,000 people versus 2019.

The Wagering and Media segment, which includes horse racing and sports betting, suffered a 10.1% decline in revenues to AU$2.08 billion (US$1.49 billion), impacted by the COVID-19 enforced closures and restrictions on retail operations across all states and territories from 23 March 2020, and the suspension of domestic and international sport.

Gaming Services revenues fell 27.3% to AU$221 million (US$159 million), also impacted by the temporary closure of hotels, pubs and clubs. Tabcorp suspended all material fees for venues during the period in which they were not trading.

“COVID-19 restrictions meant that hotels, clubs and TAB agencies were closed for significant periods of time during FY20,” said Attenborough. “This has heavily impacted our Wagering & Media, Gaming Services and Keno operations.

“We continue to support our venue partners and have waived more than AU$100 million in fees to date. We are focused on ensuring that together we emerge strongly in the post COVID-19 environment.

“Our people and partners, including the racing industry and major sports leagues, have done an extraordinary job to maintain COVIDSafe continuity of service. This has given Australians the chance to enjoy, watch and bet on racing and the games they love, from their home or, as restrictions allow, their local venue.

“We also recognize that this has been a difficult year for shareholders, with no final dividend as previously announced. We have taken action to reduce costs, preserve cash and ensure we have strength and flexibility in our balance sheet. We have also commenced a three-year, enterprise-wide optimization program designed to deliver significant cost savings and enhanced operational capability.”

RelatedPosts

Bally’s Chairman Soo Kim talks after deal sealed to acquire Australia’s Star Entertainment

Bally’s Chairman Soo Kim talks after deal sealed to acquire Australia’s Star Entertainment

Wed 9 Apr 2025 at 06:16
Trade union warns massively increased casino pokies tax in NSW will cost jobs

Pub baron Bruce Mathieson agrees additional AU$100 million Star investment, reduces Bally’s contribution to AU$200 million

Wed 9 Apr 2025 at 05:40
10 years ago: China Syndrome

Bally’s acquisition of Star described as risky with likely need for further capital investment

Tue 8 Apr 2025 at 06:18
Death by a thousand cuts

Star Entertainment Group agrees AU$300 million rescue deal with Bally’s

Mon 7 Apr 2025 at 13:23
Load More
Tags: Australiacovid-19David Attenboroughhorse racingKENOlotterysports bettingTABTabcorp
Share8Share1
Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

Current Issue

Editorial – The real reason Philippines casino revenues are down

Editorial – The real reason Philippines casino revenues are down

by Ben Blaschke
Sun 30 Mar 2025 at 23:04

After enjoying a post-COVID surge in gaming revenues at its licensed casinos, the Philippines has hit a rocky patch. In...

Inside Thai IRs

Inside Thai IRs

by Andrew W Scott and Ben Blaschke
Sun 30 Mar 2025 at 22:59

No time to read this whole article? Here are the bullet points! With passage of Thailand’s Entertainment Complex Bill through...

Resorts World Las Vegas – Lighting up the north

Resorts World Las Vegas – Lighting up the north

by Andrew W Scott and Ben Blaschke
Sun 30 Mar 2025 at 22:52

Inside Asian Gaming recently visited Genting’s American icon Resorts World Las Vegas to take a closer look at a property...

A baccarat perspective

A baccarat perspective

by Ryan Hong-Wai Ho
Sun 30 Mar 2025 at 22:37

In the first of a two-part series, Ryan Ho explores how gaming innovations and market changes have shaped the prominence...

Evolution Asia
Aristocrat
GLI
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

Bally’s Chairman Soo Kim talks after deal sealed to acquire Australia’s Star Entertainment

Bally’s Chairman Soo Kim talks after deal sealed to acquire Australia’s Star Entertainment

by Newsdesk
Wed 9 Apr 2025 at 06:16

Star Entertainment Group confirmed Monday it had entered into a binding term sheet with US casino operator Bally’s Corp to take control of the company as part of a US$300 million (US$180 million) deal. The term sheet, comprising a multi-tranche...

China-owned contractor of Chow Tai Fook’s Baha Mar ordered to pay US$1.6 billion to original owner for “many acts of fraud”

New York appellate court dismisses China Construction America’s appeal in US$1.6 billion Baha Mar fraud case

by Ben Blaschke
Wed 9 Apr 2025 at 05:59

A New York court has dismissed an appeal by China Construction America, Inc (CCA) against a Supreme Court ruling in October requiring it to pay US$1.6 billion to the original owner of Bahamas casino resort Baha Mar for committing “many acts...

Trade union warns massively increased casino pokies tax in NSW will cost jobs

Pub baron Bruce Mathieson agrees additional AU$100 million Star investment, reduces Bally’s contribution to AU$200 million

by Ben Blaschke
Wed 9 Apr 2025 at 05:40

Star Entertainment Group’s largest individual shareholder Investment Holdings Pty Ltd has entered into a binding term sheet with US casino operator Bally’s Corp that will see it subscribe for AU$100 million (US$60 million) in convertible bonds, reducing in the process...

RWLV names former MGM executive Greg Shulman as EVP of International Marketing

RWLV names former MGM executive Greg Shulman as EVP of International Marketing

by Newsdesk
Wed 9 Apr 2025 at 05:35

Genting Group’s US flagship Resorts World Las Vegas (RWLV) has announced the appointment of casino industry veteran Greg Shulman as Executive Vice President of International Marketing. Continuing the property’s recent management overhaul, RWLV said Shulman will lead its international casino...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • English