TAB New Zealand Performance Update - May 2021

25 June 2021

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

Summary

Reported Profit for the month was $14.0m, which was $2.8m above Budget. This is made up of; Betting Reported Profit $12.6m (+$2.8m vs Budget), Gaming Reported Profit of +$2.0m (+$0.1m vs Budget) and RIU Reported Profit of -$0.6m (-$0.1m vs Budget).

May saw TAB NZ receive the first portion of revenue for the sale of radio frequencies, that being of the radio studio assets. The remaining revenue is expected to be realised in June. Excluding one off/exceptional items, TAB’s Normalised Profit for the month was $13.9m, which was $2.7m above Budget. Normalised Operating Expenses were $9.9m for the month. 

For the year to date, the Reported Profit is $147.2m, which is $37.5m above Budget. Normalised Profit is $145.4m, which is $35.7m above Budget. 

In May the Board also approved making a $10m payment against TAB NZ’s ASB debt facility, which was made this month.

Wagering Performance Summary 

In May, 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 $211.3m was $16.5m above Budget and $85.6m above last year. The strong performance against Budget was driven by sport (+$17.5m vs Budget), assisted by the number of quality sporting events being broadcast globally. 

Total Gross Betting Revenue was $33.9m, $3.2m above Budget and at a margin of 16.0 percent.

Racing

Average thoroughbred starters per race was 11.3, in line with the YTD average of 11.4, while the peak turnover for a domestic meeting was $2.1m on 1 May at Te Rapa (Cambridge JC Meeting).

Harness average starters per race was 10.2, below the YTD average of 11.0, with the peak meeting turnover of $1.6m achieved on 14 May at Addington. 

For greyhound racing, the average starters per race was 7.8 across the nearly 500 races run (as per the YTD average), while the peak turnover for a domestic meeting was $540k on 14 May at Addington.

The total margin for all New Zealand racing was 17.9 percent, in line with the target of 17.4 percent, but slightly below the YTD NZ racing margin of 18.2 percent. This is expected as field sizes begin to normalise across both equine codes.

Overseas racing margin was 20 percent, above the target of 18.8 percent. 

Sport

The single biggest sporting event of the month was the Crusaders v Chiefs Super Rugby match on 8 May, followed by the Manly Sea Eagles v Warriors clash on 9 May. The margin on options selected by customers across sports continued to vary with the In-play sports delivering a gross betting margin of 8 percent, with basketball and in particular NBA continuing to be the major driver of In-play performance. The pre-match singles margin was in line with expectations at 11 percent, driven by rugby, football and league.

Sports Multi margin was below 20 percent, largely influenced by a significant amount of NRL and Super Rugby Trans-Tasman matches being won by favourites.

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May Operational Performance 

  • Net Profit (normalised) for the month was $13.9m, which was $2.7m above Budget.
  • Operating Expenses (normalised) were $9.9m for the month, which was $0.2m below Budget. 
  • Year To Date (1 Aug 2020 to 31 May 2021) Reported Profit (normalised) was $145.4m, which was $35.7m above Budget. 
  • Year To Date (1 Aug 2020 to 31 May 2021) Operating Costs (normalised) were $99.2m, which was $0.7m below Budget.
     

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May Distributions

Racing Codes were paid $16.5m in actual distributions for May versus $11.1m 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 repeal.

The $9.8m budget payment (Fixed Distribution in the table below) was made, plus an additional one off extra $5m payment which was made on the 20th of May.

Top 10 Racing events by turnover

Date

Venue

Race No.

Race description

Turnover

22-May

Doomben

R7

Channel 7 Doomben Cup (G1)

$427K

1-May

Te Rapa

R5

Inglis Sales Cambridge Breeders Stakes (G3)

$380K

1-May

Te Rapa

R7

Travis Stakes (G2)

$368K

8-May

Te Rapa

R10

Te Rapa Tavern 1400

$348K

29-May

Ellerslie

R8

Jon Snow At Clearview Park 1600

$347K

29-May

Eagle Farm

R7

Moet & Chandon Queensland Derby (G1)

$333K

15-May

Arawa Park

R6

Campbell Infrastructure Rotorua Cup (G3)

$325K

8-May

Te Rapa

R9

#Completethefleet - Ambulance Trust Mile

$321K

8-May

Te Rapa

R8

Dunstan Feeds 1200

$307K

29-May

Ellerslie

R7

Network Visuals 1200

$303K

Top 10 Sporting events by turnover

Date

Code

Event

Turnover

8-May

Rugby Union

Crusaders v Chiefs

$738K

9-May

Rugby League

Manly Sea Eagles v New Zealand Warriors

$410K

6-May

Rugby League

South Sydney Rabbitohs v Melbourne Storm

$384K

27-May

Rugby League

Brisbane Broncos v Melbourne Storm

$348K

20-May

Rugby League

North Queensland Cowboys v Newcastle Knights

$269K

14-May

Rugby Union

Highlanders v Reds

$231K

1-May

Rugby Union

Blues v Chiefs

$230K

2-May

Rugby League

New Zealand Warriors v North Queensland Cowboys

$222K

15-May

Rugby Union

Crusaders v Brumbies

$205K

16-May

Rugby League

New Zealand Warriors v Parramatta Eels

$204K