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Tabcorp to slash costs as pandemic forces $600m raising

The lotteries and wagering group will raise funds and embark on a three-year cost-cutting program after a 30 per cent fall in 2020 profits.

James Thomson
James ThomsonColumnist

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Key Points

  • Revenue ($m) 5224.0, down -4.8%
  • EBIT ($m) -574.0, down-177.6%
  • Net profit ($m) -870.0, down-341.0%
  • No final dividend 

Lotteries and wagering giant Tabcorp will embark on a three-year cost-cutting program after a profit hit from COVID-19 and intense competition forced the group to tap investors for $600 million to strengthen its balance sheet.

But chief executive David Attenborough remains upbeat on the outlook for the group. He says its lotteries division is performing well and its wagering division will finally have the chance to shine, following a gruelling program of investment and integration after Tabcorp's 2017 merger with Tatts Group.

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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com

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    Original URL: https://www.afr.com/companies/games-and-wagering/tabcorp-to-raise-600m-as-pandemic-hits-profit-20200818-p55myj