TAB New Zealand Update on Trading Performance - February 2021

26 March 2021

TAB New Zealand (TAB NZ) provides the latest monthly trading update for the 2020/2021 financial year, with the results and highlights for February 2021. In considering the comparative results with February FY20, it should be noted that FY20 was a leap year, with five Saturdays in the month. 

Wagering Performance Summary 

TAB’s strong performance experienced in the early months of this financial year has continued through 2021 with a reported profit before distributions of $10.3M for February. Turnover for the month was $187.3M, which was $0.4M above last year driven by strong sporting performance and the number of quality sporting events being broadcast globally. Gross betting revenue for the period was $29.7M, $2.9M above budget and $1.4M above last year at a margin of 15.8 percent.

Due to the unprecedented impact of Covid-19 on the business from March 2020 to July 2020, The remaining updates for the year on trading performance will not include a monthly comparison with FY20.

Racing 

Turnover on NZ thoroughbred racing for the month was $30.0M at a margin of 20 percent with the peak domestic meeting turnover for Thoroughbreds secured on 13 February at Te Rapa ($3.38M). Thoroughbred field sizes continue to average over 11 starters per race, again contributing to a strong NZTR fixed odds margin of 19.7 percent. 

Gross Turnover on domestic harness racing was $17.3M for the month with the peak domestic meeting turnover for Harness on 8 February at Rangiora ($1.25M). Average starters per race for the period was 10.7 vs YTD average of 11.2. There was a lower Fixed Odd Margin for the month of 16.9 percent due to 36 percent of favourites winning against the forecast 30 percent.

NZ greyhound racing gross turnover for the month of $11.9M was at a margin of 16.1 percent. The peak domestic meeting turnover of Greyhounds was on 4 February at Addington ($0.54M). Average starters per race was 7.6 which is the year to date average.

Sport

Turnover on sport for the month was $56.0M, up $10.3M against budget. Tampa Bay Buccaneers’s Superbowl win against the Kansas City Chiefs was the single most popular sports event for the month, with turnover of $742k, almost $300k more than the next most popular event - the Black Caps v Australia ($453k). 

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February Operational Performance 

  • Net Profit for the month was $10.3M, which was $1.2M above budget but $0.7M below last year. This was due to the change of accounting treatment of venue service costs being recovered from racing clubs and corporate bookmaker revenue being passed directly to the codes and not accounted for in TAB NZ’s Profit and Loss. 
  • Operating Expenses for the month were $9.6M, which was $0.2M below budget and $1.4M below last year. 
  • Year To Date (1 Aug 2020 to 28 Feb 2021) Reported Profit was $104.8M, which was $27.1M above budget and $18.2M above last year. 
  • Year To Date (1 Aug 2020 to 28 Feb 2021) Operating Costs were $68.0M, which was $1.4M below budget and $14.4M (18 percent) below last year. 

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February Distributions

Racing Codes were paid $9.8M in actual distributions for February versus $9.3M 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.

February Wagering Performance 

  • Turnover of $187.3M was $16.6M above Budget and was driven by Sport +$10.3M, International Racing (exc VIP) +$7.2M, Domestic Racing -$1.9M and VIP +$0.9M.
  • Gross Betting Revenue was $29.7M, $2.9M above Budget and $1.4M above Last Year. 
  • The total number of active customers was 94,800. 

 

Top 10 Racing events by turnover

Date

Venue

Race No.

Race description

Turnover

20-Feb

Ellerslie

R8

Wallen Concreting Avondale Cup (G2)

$555K

13-Feb

Te Rapa

R8

Herbie Dyke Stakes (G1)

$555K

13-Feb

Te Rapa

R6

BCD Group Sprint (G1)

$534K

13-Feb

Te Rapa

R9

Peter Kelly - Bayleys Real Estate Mile

$463K

20-Feb

Ellerslie

R7

AJC Avondale Guineas (G2)

$452K

13-Feb

Te Rapa

R7

David & Karyn Ellis Fillies Classic (G2)

$440K

6-Feb

New Plymouth

R7

Fasttrack Insurance Oaks Prelude

$386K

27-Feb

Matamata

R6

Lisa Chittick Plate

$377K

6-Feb

New Plymouth

R6

Platinum Homes Sc Maiden

$369K

20-Feb

Ellerslie

R6

Barfoot & Thompson Handicap 1200

$368K

Top 10 Sporting events by turnover

Date

Code

Event

Turnover

8-Feb

American Football

Tampa Bay Buccaneers v Kansas City Chiefs

$742K

22-Feb

Cricket

New Zealand v Australia

$453K

27-Feb

Rugby Union

Hurricanes v Blues

$366K

26-Feb

Rugby Union

Highlanders v Crusaders

$352K

27-Feb

Boxing

Joseph Parker v Junior Fa

$328K

19-Feb

Basketball

Los Angeles Lakers v Brooklyn Nets

$327K

6-Feb

Cricket

Sydney Sixers v Perth Scorchers

$319K

21-Feb

Tennis

N Djokovic v D Medvedev

$308K

4-Feb

Cricket

Perth Scorchers v Brisbane Heat

$306K

25-Feb

Cricket

New Zealand v Australia

$304K