TAB New Zealand Performance Update - March 2022

TAB New Zealand (TAB NZ) provides the eighth monthly trading update for the 2021/2022 financial year, with the results and highlights for March 2022.

The TAB continued to operate successfully through its online and retail channels throughout March, despite some impact to retail operations due to the current Omicron outbreak. The outbreak has had a continued impact on foot traffic in the retail and hospitality sector, leading to a downturn in gaming turnover at TAB retail outlets, although these figures showed signs of improvements towards the end of March.

Racing and sports betting turnover and profit performed well despite fewer customers interacting with the retail and hospitality sector. Turnover was back above budget in March after dipping below in February and, combined with a gross betting margin on par with budget, the gross betting revenue was also above budget. The peak of the Omicron outbreak in late March and the resulting effect on foot traffic in retail and on-course, was mitigated by the loosening of gathering restrictions for outdoor events, allowing race clubs to increase crowd capacities.

The TAB NZ Board has been able to maintain betting profit distributions at budgeted levels through the year to date. With funding from Betting Information Use Charges and the Betting Levy tracking above budget, this has meant that total distributions have been above budgeted expectations. As the New Zealand government continues to adapt its approach to the Omicron variant of the Covid-19 virus, the Board will factor in potential developments and how these might affect trading conditions and what this may mean for profit distributions.

Wagering Performance Summary

In March, the key performance results for TAB were in line with the overall positive trends of the 2021/22 financial year. Subject to final audit, turnover of $215.9m was 2.2% ($4.7m) above budget and gross betting revenue (GBR) of $34.6m was up on budget by 2.6% ($0.9m). The gross betting margin (GBM) of 16.0% was in line with budget.

Racing

Average NZ thoroughbred starters per race was 10.1, below the Year To Date (YTD) average of 10.5, while the peak turnover for a domestic meeting was $4.2m on 5 March for Vodafone Derby Day at Ellerslie. Harness average starters per race was 9.7, below the YTD average of 10.2, while the peak meeting turnover of $1.2 was on 6 March for the Hororata Trotting Club meeting at Methven. For greyhound racing, the average starters per race was 7.5, dropping slightly below the YTD average of 7.6, while the peak turnover for a domestic meeting was $595k on 6 March at Manukau.

Sport

The top sporting event for March was the Warriors vs Dragons NRL on the 12th March at $396k closely followed by other NRL and ICC Women’s World Cup cricket matches. Basketball dominated in-play performance, accounting for 40% of in-play turnover.

March Operational Performance

• Reported Profit for the month was $12.1m, which was $1.6m below Budget.
• Operating Expenses were $10.3m for the month, which was in line with Budget.
• Year To Date (1 Aug 2021 to 31 Mar 2022) Reported Profit* was $109.1m, which was $0.4m above Budget and $7.6m below last year.
• Year To Date (1 Aug 2021 to 31 Mar 2022) Operating Expenses* were $76.9m, which was $3.2m below Budget and $2.7m above last year.

* - Note: Year to date figures are subject to final audit.

March Distributions

Racing Codes were paid $14.3m in distributions and other payments for March, versus $14.1m 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 Use Charges (BIUC) in the table below), and Betting Duty/Levy repeal.

Top 10 Racing events by turnover

Top 10 Sporting events by turnover