TAB New Zealand Performance Update - March 2021

22 April 2021

TAB New Zealand (TAB NZ) provides the latest monthly trading update for the 2020/2021 financial year, with the results and highlights for March 2021. Due to the significant impact of COVID-19 on the business’s performance in March 2020, no comparisons with FY20 are included in this month’s report. 

Reported profit for the month was $11.9m, which was $1.8m above budget. This is made up of; Betting Reported Profit at $10.8m (+$2.0m v budget), Gaming Reported Profit of $1.8m ( -$0.1m vs budget) and Racing Integrity Unit Reported Profit of -$0.7m (-$0.1m vs budget). 

For the year to date, the reported profit is $116.7m,  which is $28.9m above budget.   

Wagering Performance Summary 

The key performance results for TAB in March were strong, with turnover, gross betting revenue and net betting revenue all above budget for the month. 

Total turnover for the month was $205.7m which is $22.1m above budget. The strong performance against budget was driven primarily by sport which was +$17.5m against budget and was largely attributable to the number of quality sporting events being broadcast globally.  Turnover on racing was +$4.6m above budget largely due to continued strong performance from overseas racing. 

Gross betting revenue (GBR) of $31.7m was $2.8m above budget with margin of 15.4 percent. The GBR excludes the cost of Bonus Bets which is captured separately.

Racing

Average thoroughbred starters per race was 10.5 vs YTD average of 11.5, while the peak turnover for a domestic meeting was $3.96M on 13 March at Ellerslie.

Average starters per race was 10.5 vs YTD average of 11.1 for harness racing, with the peak meeting turnover was $1.3m on 26 March at Addington. For greyhound, the average starters per race for greyhound was 7.7 vs YTD average of 7.6 with the peak meeting turnover secured on 28 March in Auckland ($0.59M). 

The margin for New Zealand racing was 17.4 percent, in line with the target of 17.4 percent.  This has reduced compared with the YTD NZ racing margin of 18.3 percent as field sizes normalise.

Overseas racing margin was 19.1 percent, in line with the target of 18.8 percent. 

Sport

The single biggest sporting event of the month was the Mixed Martial Arts contest between Jan Blachowicz and Israel Adesanya, while the Black Caps featured in 3 of the top ten events by turnover. The margin on options selected by customers across sports continued to vary with the In-play sports delivering a gross betting margin 6.5 percent, with 40 percent of in-play turnover for the month  coming from Basketball. The pre-match singles margin was strong at 15.1 percent driven by margins in Rugby League, Rugby Union and MMA of 42 percent.

Sports Multi margin was 14.6 percent and behind budget, largely influenced by the top three sports by multi turnover for the month all performing under expectation.

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March Operational Performance 

  • Net Profit for the month was $11.9m, which was $1.8m above budget.
  • Operating Expenses were $10.7m for the month which was $0.4m above budget. 
  • Year To Date (1 Aug 2020 to 31 Mar 2021) Reported Profit was $116.7m which was $28.9m above budget and $22.1m above last year. 
  • Year To Date (1 Aug 2020 to 31 Mar 2021) Operating Costs were $78.8m, which was $1.0m below budget and $14.5m (16 percent) below last year. 

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March Distributions

Racing Codes were paid $10.5m in actual distributions for March versus $10.1m 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

13-Mar

Ellerslie

R9

Barfoot & Thompson Auckland Cup (G1)

$861K

7-Mar

Ellerslie

R9

Vodafone NZ Derby (G1)

$774K

20-Mar

Trentham

R8

Al Basti Equiworld Dubai New Zealand Oaks (G1)

$677K

7-Mar

Ellerslie

R7

Haunui Farm King's Plate (G3)

$489K

20-Mar

Trentham

R9

Harrisons Carpet Premier

$477K

13-Mar

Ellerslie

R7

Bonecrusher NZ Stakes (G1)

$450K

27-Mar

Rosehill

R7

Longines Golden Slipper (G1)

$444K

7-Mar

Ellerslie

R10

Barfoot & Thompson 1600

$443K

6-Mar

Randwick

R7

Mostyn Copper Randwick Guineas (G1)

$441K

13-Mar

Moonee Valley

R8

All-Star Mile

$440K

Top 10 Sporting events by turnover

Date

Code

Event

Turnover

7-Mar

MMA

Jan Blachowicz v Israel Adesanya

$473K

23-Mar

Cricket

New Zealand v Bangladesh

$391K

21-Mar

Rugby Union

Blues v Crusaders

$335K

3-Mar

Cricket

New Zealand v Australia

$329K

17-Mar

Sailing

America's Cup 2021

$326K

5-Mar

Cricket

New Zealand v Australia

$324K

18-Mar

Rugby League

Parramatta Eels v Melbourne Storm

$313K

25-Mar

Rugby League

Penrith Panthers v Melbourne Storm

$300K

13-Mar

Rugby Union

Crusaders v Chiefs

$290K

7-Mar

Rugby Union

Crusaders v Hurricanes

$278K