TAB New Zealand Performance Update - June 2021

23 July 2021

TAB New Zealand (TAB NZ) provides the latest monthly trading update for the 2020/2021 financial year, with the results and highlights for June 2021. Consistent with previous months, June saw continued strong performance by TAB NZ.

Summary

Reported Profit for the month was $16.0m, which was $6.0m above Budget. This is made up of; Betting Reported Profit $14.7m (+$6.1m vs Budget), Gaming Reported Profit of $2.0m (+$0.1m vs Budget) and RIU Reported Profit of -$0.7m (-$0.1m vs Budget).

June saw TAB NZ recognise the sale of Radio to SENZ for $2.2m. Excluding one off/exceptional items, TAB’s Normalised Profit for the month was $13.8m, which was $3.8m above Budget. Normalised Operating Expenses were $9.5m for the month. 

For the year to date, Normalised Profit is $159.1m, which is $39.5m above Budget. Reported Profit is $163.1m, which is $43.5m above Budget. 

Wagering Performance Summary 

In June, the key performance results for TAB were strong, with turnover, gross betting revenue and net betting revenue all above Budget for the month. Turnover of $209.5m was $26.7m above Budget and $44.6m above last year. The strong performance against Budget was driven by sport (+$23.6m vs Budget), assisted by the number of quality sporting events being broadcast globally. 

Total Gross Betting Revenue was $33.8m, $5.0m above Budget and at a margin of 16.2 percent.

Racing

Average NZ thoroughbred starters per race was 10.7, below the YTD average of 11.4, while the peak turnover for a domestic meeting was $2.2m on 26 June at Gate Pa, Tauranga.

Harness average starters per race was 10.0, below the YTD average of 10.9, with the peak meeting turnover of $2.4m achieved on 6 June at Cambridge (Harness Jewels).

For greyhound racing, the average starters per race was 7.7, slightly above the YTD average of 7.6, while the peak turnover for a domestic meeting was $653k on 14 May at Manukau.

The total margin for all New Zealand racing was 18.2 percent, in line with YTD New Zealand racing margin.  Overseas racing margin was 19.2 percent, also in line with YTD results.

Sport

State of Origin dominated sports events this month with Game 1 the largest event and Game 2 the third largest event by turnover, split by the Super Rugby Trans-Tasman final. The margin on options selected by customers across sports continued to vary with the in-play sports delivering a gross betting margin of 6.7 percent and basketball continuing to be the major driver of in-play performance, accounting for 31 percent of in-play turnover at 7.3 percent. The pre-match singles margin was above expectation at 17 percent, largely driven by good results in rugby and basketball.  Sports Multi margin was 21 percent.

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June Operational Performance 

  • Net Profit (normalised) for the month was $13.8m, which was $3.8m above Budget.
  • Operating Expenses (normalised) were $9.5m for the month, which was $0.6m below Budget. 
  • Year To Date (1 Aug 2020 to 30 June 2021) Reported Profit (normalised) was $159.1m, which was $39.5m above Budget. 

Year To Date (1 Aug 2020 to 30 June 2021) Operating Costs (normalised) were $108.7m, which was $1.3m below Budget.

June Distributions

Racing Codes were paid $10.3m in actual distributions for June versus $9.7m 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 Use Charges (BIUC) in the table below), and Betting Duty/Levy repeal. 

Top 10 Racing events by turnover

Date

Venue

Race No.

Race description

Turnover

12-Jun

Eagle Farm

R8

Stradbroke Handicap

$379K

6-Jun

Cambridge

R9

Civtec 4Yo Emerald Mobile Pace (G1)

$369K

26-Jun

Gate Pa

R7

Team Wealleans Tauranga Classic

$346K

6-Jun

Cambridge

R6

McMillan Equine Feeds 2Yo Emerald Mbl Pace (G1)

$340K

6-Jun

Cambridge

R4

Hardwood Breeding Synd 2Yo Diamond Mbl Pace (G1)

$335K

6-Jun

Cambridge

R7

Irt 3Yo Emerald Mobile Pace (G1)

$330K

5-Jun

Wanganui

R5

Balance Accountants 1340

$329K

26-Jun

Eagle Farm

R8

Sky Racing Tattersall's Tiara (G1)

$316K

7-Jun

Ellerslie

R9

Blue Bubble Taxis 1200

$311K

6-Jun

Cambridge

R8

Garrard's Horse & Hound 4Yo Ruby Mbl Trot (G1)

$299K

 

Top 10 Sporting events by turnover

Date

Code

Event

Turnover

9-Jun

Rugby League

Queensland v New South Wales

$635K

19-Jun

Rugby Union

Blues v Highlanders

$498K

27-Jun

Rugby League

Queensland v New South Wales

$497K

13-Jun

MMA

Israel Adesanya v Marvin Vettori

$424K

24-Jun

Cricket

India v New Zealand

$326K

17-Jun

Rugby League

Brisbane Broncos v South Sydney Rabbitohs

$313K

21-Jun

Golf

US Open 2021

$271K

13-Jun

Rugby League

New Zealand Warriors v Melbourne Storm

$270K

3-Jun

Rugby League

St George/Illa Dragons v Brisbane Broncos

$264K

17-Jun

Basketball

Utah Jazz v Los Angeles Clippers

$241K