Tabcorp furloughs more than 700 employees

Australian operator Tabcorp has furloughed more than 700 employees in an attempt to mitigate the impact of the coronavirus outbreak on business.

Employees will be stood down until at least 30 June, after which the hope and expectation is that they will be able to return to full time work.

Remaining full time Tabcorp employees will have to take one mandatory day of annual leave per week until 30 June.

There has also been a 40% reduction in the number of technology contractors at Tabcorp – around 160 people.

David Attenborough, Tabcorp’s CEO and MD, has taken a 20% reduction in his fixed remuneration until 30 June, while board chair and non-executive director fees have been reduced by 10% until the same date.

Tabcorp’s online channels continue to run, as does its retail lottery operations. The firm has also suspended fees owed to it by licensed venues under various contracts.

Tabcorp was not able to disclose the wider financial implications on the business as a result of the pandemic but did point to its strong cash liquidity and lack of debt.

In a statement, Tabcorp said: “At this stage, Tabcorp cannot reliably quantify the effect of Covid-19 on the overall earnings of the group. Consequently, Tabcorp is not currently in a position to provide specific guidance on earnings or financial impacts of Covid-19 on the group in FY20 and FY21.”

The Melbourne-based firm detailed it had undrawn facilities of $100m and unrestricted cash of $649m and that there were no debut maturities until April 2022.

Attenborough noted that Tabcorp was working “proactively and collaboratively” with stakeholders to ensure the survival of the firm.

He said: “This continues to be a very challenging time for our people, businesses, partners and the community.

“We are committed to working proactively and collaboratively with all our stakeholders so that we can collectively emerge from the Covid-19 period as strongly as possible.”