Tabcorp (ASX:TAH) expects $1.1 billion impairment

Tabcorp (ASX:TAH) has announced it expects to incur a non-cash goodwill impairment charge of between $1 billion and $1.1 billion in its 2020 financial year results relating to the company’s Wagering & Media and Gaming Services businesses.

The company said the charges reflect the direct impact of the government to address the Covid-19 pandemic on its business operations, the potential acceleration of retail contraction, competitive intensity, the potential decline in consumer confidence and increased economic uncertainty.

Tabcorp’s Managing Director and CEO David Attenborough said Covid-19 has materially impacted its Wagering & Media and Gaming Services businesses during a challenging and uncertain environment. 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, he said.

Tabcorp’s Managing Director and CEO David Attenborough said: “Covid-19 has materially impacted our Wagering & Media and Gaming Services businesses. 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.”

The company announced it currently expects FY20 EBITDA to be in the range of $990 million to $1 billion and net profit after tax to be in the range of $267 million to $273 million.

Shares in Tabcorp (ASX:TAH) are trading 5.1 per cent lower at $3.38.  
Copyright 2020 – Finance News Network

Source: Finance News Network