The JSE has requested of issuers to assess the impact, if any, that the outbreak of COVID-19 and restrictions on gatherings may have on their business operations in terms of disclosure obligations contained in the JSE Listings Requirements.
In accordance with the guidelines and restrictions on public gatherings announced by President Cyril Ramaphosa, Phumelela, Kenilworth Racing, Gold Circle, the Racing Association, the National Horseracing Authority and The Thoroughbred Horseracing Trust decided on 15 March to stage horse race meetings behind closed doors until further notice with no public attendance and only essential participants in attendance.
Attendance at betting shops located away from racetracks is limited to under 100 persons.
Further detail in this regard is available on the Phumelela website under the news tab.
At this early stage it is not possible to provide a definitive numerical effect of the global COVID-19 pandemic on the Tote and fixed odds operations.
Depending on the duration of restrictions there may be an impact on Tote and fixed odds turnover on racing and thus revenue for the Group.
Given that racing is continuing our International division is benefiting from ongoing live broadcast internationally. Racing restrictions in other jurisdictions may positively or negatively impact International.
As an example, UK racing is suspended until the end of April but punters in that country are still able to bet on South African racing and this may attract additional turnover.
Reduced attendance at betting shops will also negatively impact gaming revenue but online betting is likely to be minimally affected, if at all, and may attract punters who otherwise would have visited a shop.
Sports betting is negatively affected by sporting fixtures such as soccer being cancelled or rescheduled internationally but alternative bet types such as numbers may gain market share as a result.
Shareholders will be kept informed should further information come to light. Shareholders are reminded of the going concern statement disclosed in note 36 of the 2019 integrated annual report.
At this time, there is no change to that statement and the going concern status is assessed continually. Cost savings referenced are anticipated to be exceeded. The Group is in regular communication with its bankers in respect of the facilities available and covenants.
Shareholders are reminded that Phumelela is under cautionary and are advised to continue to exercise caution when dealing in the Company s securities.
Sens announcement- Phumelela Gaming & Leisure Ltd
