Just days after Racing Victoria signalled a welcome return to full prizemoney for the thoroughbred industry, Monday’s announcement by Tabcorp to the Australian Stock Exchange that profit is forecast to drop by 32 percent for the 2019-2020 financial year will have raised eyebrows among the nation’s racing executives.
Tabcorp’s David Attenborough
Contextually, that drop expects to see profits fall to a point around A$270 million, some A$126 million less than the year before.
According to racing.com, the gaming and wagering company pointed to COVID-19 as the main reason for the plunge in profits, however all of that would have taken place well before Victoria’s current Stage 4 lockdown.
While some online bookmakers increased turnover during the same period, the bricks and mortar nature of pubs, clubs and betting shops are likely to be further impacted by an almost complete retail shutdown in greater Melbourne.
Tabcorp’s chief executive David Attenborough commented, “We are facing into a challenging and uncertain environment, and the current operating conditions and those expected into the future are relevant factors in assessing the value of the goodwill in those businesses at this time.”
Tabcorp’s share price has fallen over 23 percent since February when it was trading at A$4.61.
