Sharenet Sites 
Sharenet Sites
COVID-19 Impact on JSE Listings requirements
Phumelela Gaming & Leisure Limited
(Registration number 1997/016610/06)
(Incorporated in the Republic of South Africa)
Share Code: PHM ISIN: ZAE000039269
(“Phumelela” or “the Company” or “the Group”)
COVID-19 Impact on JSE Listings requirements
In respect of the letter to issuers by the JSE on 10 March 2020 concerning the impact of COVID-19 on JSE
Listings Requirements and the statement issued on SENS in this regard by the Group on 20 March 2020,
the following updated information is pertinent as to the impacts of COVID-19 and the responses thereto.
The first statement to shareholders in respect of the impact of COVID-19 was issued prior to the nationwide
lockdown which came into effect at midnight, 26 March 2020. The guidelines and restrictions on public
gatherings were therefore superseded by a strict prohibition on movement and assembly. Consequently,
the South African horse racing industry has by law been unable to stage race meetings from the date of the
lockdown. All of Phumelela’s betting shops are closed with no revenues being earned
The cessation of horse racing has meant that there is no South African product to export internationally.
Training centres remain operational under strict access control and sanitization protocols. Horses are being
kept in prime condition in order to return to racing as soon as permission is granted to do so. Sports betting
has been negatively affected by sporting fixtures such as soccer being cancelled. Online betting is open,
but revenue is insufficient to compensate for this large void and betting opportunities have in any event
been sharply curtailed.
The Group is faced with circumstances that are beyond its control and which have had a material adverse
effect on revenue since the start of lockdown. Measures have been implemented to reduce costs where
possible, however many costs remain fixed. Phumelela’s share of betting levies, worth R75m p.a., that were
withdrawn in April 2019 have not yet been reinstated and urgent negotiations continue with representatives
of the Gauteng Government to do so.
Stakeholders are referred to the going concern statement disclosed in note 36 of the 2019 annual report.
The going concern status is assessed continually in the light of prevailing conditions. At this stage, the
Group cannot reliably quantify the financial effect for this financial year or the next financial year caused by
COVID-19 and governments’ consequent shut-down of most economic activity.
Should the lockdown be lifted at the end of April and racing be permitted to resume, possibly behind closed
doors, then the horse racing industry is planning to recommence racing on 1 May. Racing fixtures have
been rescheduled accordingly. The National Horse-Racing Authority is coordinating representations on
behalf of all the key players in horse racing to the National Coronavirus Command Council. If racing is not
given authority to resume in early May, together with the opening of betting-shops, it is likely that a
rationalisation of the entire horse racing industry and associated value chain in South Africa will occur with
consequent significant loss of jobs and reduced tax collections. It is note-worthy that independent studies
have calculated that some 40 000 jobs are dependent on the horse-racing industry in South Africa.
Shareholders are reminded that Phumelela is under cautionary and are advised to continue to exercise
caution when dealing in the Company’s securities.
Turffontein
20 April 2020
Sponsor: Investec Bank
Date: 20-04-2020 11:18:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
