TAB New Zealand Performance Update - April 2021

28 May 2021

TAB New Zealand (TAB NZ) provides the latest monthly trading update for the 2020/2021 financial year, with the results and highlights for April 2021

During the month, TAB NZ also confirmed a one-off, special distribution payment, of $5m, to the racing codes. The payment follows the scheduled review of the business’s trading performance for the third quarter and is in addition to TAB NZ’s budgeted distribution commitment for this year and was paid on 20 May.

Summary

Reported profit for the month was $16.5m, which was $1.9m above forecast. This is made up of; Betting Reported Profit $15.8m (+$2.1m v forecast), Gaming Reported Profit of +$1.6m (+$0.1m vs forecast) and RIU Reported Profit of -$0.9m (-$0.3m vs forecast).

Included in April were a number of exceptional/one off items, including the transfer of Laboratory assets to the new Racing Integrity Board entity and the forecasted sale of radio frequencies which was expected to be recognised in April but will now occur in May.  Excluding these items TAB’s Normalised Profit for the month was $14.8m, which was $2.5m above forecast. Normalised Operating Expenses were $10.5m for the month. 

For the year to date, the reported profit is $133.2m, which is $3.2m above forecast. 

Wagering Performance Summary 

The key performance results for the TAB in April continued to be strong, with turnover, gross betting revenue and net betting revenue all above forecast for the month. 

Turnover of $209.0m was $2.0m above forecast and $101.6m above last year. The strong performance against forecast was driven by sport +$8.8m, assisted by the number of quality sporting events being broadcast globally. 

Total Gross Betting Revenue of $35.3m was $2.6m above forecast at a margin of 16.9 percent.

Racing

Average thoroughbred starters per race was 10.9, slightly below the YTD average of 11.4, while the peak turnover for a domestic meeting was $2.9m on 3 April at Awapuni (Courtesy Ford Manawatu Sires Produce Stakes Day).

Average starters per race was 10.6 again just below the YTD average of 11.0 for harness racing, with the peak meeting turnover of $1.6m achieved on 9 April at the Inkwise Trotting Derby Addington. 

For greyhound racing, the average starters per race was 7.8 across the 400 races run, with the peak meeting turnover secured on 15 April at the Mike Stent Decorators New Zealand Derby in Cambridge ($0.48m). 

The margin for all New Zealand racing was 17.7 percent, in line with the target of 17.4 percent but slightly below the YTD NZ racing margin of 18.2 percent. This was expected as field sizes normalise.

Overseas racing margin was 20.2 percent, above the target of 18.8 percent. 

Sport

The single biggest sporting event of the month was the Crusaders v Highlanders Super Rugby match on 2 April, closely followed by the Melbourne Storm v Warriors clash on ANZAC day. The margin on options selected by customers across sports continued to vary with the In-play sports delivering a gross betting margin 7 percent, with Basketball and in particular NBA continuing to be the major driver of In-play performance The pre-match singles margin was also strong at 14 percent driven by Rugby and League results.

Sports Multi margin was 29 percent, largely influenced by favourable results across the top three sports by multi turnover for the month (Basketball, League & Football)

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April Operational Performance 

  • Net Profit (normalised) for the month was $14.8m, which was $4.2m above budget.
  • Operating Expenses (normalised) were $10.5m for the month which was $0.4m above budget. 
  • Year To Date (1 Aug 2020 to 30 Apr 2021) Reported Profit (normalised) was $131.5m which was $33.1m above budget. 
  • Year To Date (1 Aug 2020 to 30 Apr 2021) Operating Costs (normalised) were $89.3m, which was $0.5m below budget. 

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April Distributions

Racing Codes were paid $11.9m in actual distributions for April versus $11.0m budgeted. This consisted of TAB NZ Betting Profit (listed as Fixed Distribution in the table below), Offshore Bookmaker Commission Fees, which are based on actual turnover (termed Betting Information User Charge (BIUC) in the table below), and Betting Duty repeal.

Top 10 Racing events by turnover

Date

Venue

Race No.

Race description

Turnover

24/4/21

Ellerslie

R8

Manco Easter Handicap (G2)

$599K

10/4/21

Randwick

R7

Bentley Australian Derby (G1)

$598K

3/4/21

Rosehill

R7

Kia Tancred Stakes (G1)

$505K

10/4/21

Randwick

R9

The Star Doncaster Mile (G1)

$498K

3/4/21

Awapuni

R7

Courtesy Ford Manawatu Sires Produce Stakes (G1)

$476K

17/4/21

Randwick

R9

Moet & Chandon Queen of the Turf Stakes (G1)

$445K

24/4/21

Ellerslie

R7

Trelawney Stud Championship Stakes (G2)

$421K

17/4/21

Randwick

R7

Schweppes Sydney Cup (G1)

$415K

17/4/21

Randwick

R8

Longines Queen Elizabeth Stakes (G1)

$372K

3/4/21

Awapuni

R9

City of Palmerston North Awapuni Gold Cup (G2)

$363K

Top 10 Sporting events by turnover

Date

Code

Event

Turnover

2-Apr

Rugby Union

Crusaders v Highlanders

$326K

25-Apr

Rugby League

Melbourne Storm v New Zealand Warriors

$323K

22-Apr

Rugby League

Penrith Panthers v Newcastle Knights

$315K

29-Apr

Rugby League

Canberra Raiders v South Sydney Rabbitohs

$314K

12-Apr

Golf

US Masters 2021

$314K

15-Apr

Rugby League

Brisbane Broncos v Penrith Panthers

$309K

1-Apr

Rugby League

Manly Sea Eagles v Penrith Panthers

$308K

4-Apr

Rugby League

Sydney Roosters v New Zealand Warriors

$298K

8-Apr

Rugby League

South Sydney Rabbitohs v Brisbane Broncos

$287K

23-Apr

Rugby Union

Chiefs v Hurricanes

$267K