TAB New Zealand Update on Trading Performance - January 2021

TAB New Zealand (TAB NZ) provides the latest monthly trading update for the 2020/2021 financial year, with the results and highlights for January 2021. 

Wagering Performance Summary

The positive performance of the TAB seen in the final months of 2020 has continued into the New Year with January recording a reported profit before distributions of $17.1M. Notable highlights include a successful summer carnival season, with record turnover on several meetings throughout New Zealand, while continued TAB operational savings and a solid schedule of international sporting fixtures also contributed to the result.

Racing 

Wagering on New Year's day racing at Ellerslie was up $1.5M on the previous year, with a record turnover of $6.7M for the meeting. The New Zealand Bloodstock Karaka Million meeting generated turnover of $4.9M, while NZCIS Wellington Cup Day at Trentham achieved $5.5M. Turnover on NZ thoroughbred racing for the month was $57.6M at a margin of 20 percent. Starter numbers were up 8.3 percent, as compared with January 2020. 

Turnover on domestic harness racing was $23.1M for the month with 36 percent of favourites winning, against the forecasted 30 percent. This resulted in a lower Fixed Odd Margin for the month of 11.1 percent.

NZ greyhound racing turnover for the month of $12.45M was at a margin of 14.7 percent. Week to week turnover across the January period has been consistent with a similar number of starters, races and meetings each week.

Outside New Zealand, over the Christmas/New Year period, wagering on Australian product was dominated by Thoroughbred racing and driven by an increase in customers and supply of races, which saw wagering activity being just shy of weeks where feature races (ex Melbourne Cup) have been run (e.g. Cox Plate, Caulfield Cup). 

Sport

Turnover on sport for the month was $68.3M, up $9.1M against budget. Almost 43 percent of all sports wagering for the month was on Basketball products. While most of this was on NBA, there have also been increases in week to week turnover on US College basketball and the Australian National Basketball League. 

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January Operational Performance 

• Net Profit for the month was $17.1M, which was $5.3M above budget and $5.8M above last year.
• Operating Expenses for the month were $9.9M, which was $0.3M below budget and $2.3M below last year. 
• Year To Date (1 Aug 2020 to 31 Jan 2021) Reported Profit was $94.5M, which was $25.9M above budget and $19M above last year. 
• Year To Date (1 Aug 2020 to 31 Jan 2021) Operating Costs were $58.5M, which was $1.2M below budget and $13M (18 percent) below last year . 

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January Distributions

Racing Codes were paid $13.3M in actual distributions for January versus $12.5M 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.

January Wagering Performance 

• Turnover of $236.0M was $40.2M above Budget and was driven by Sport +$8.1M, International Racing (exc VIP) +$9.7M, Domestic Racing +$18.6M and VIP +$3.8M.
• Gross Betting Revenue was $38.1M, $7.4M above Budget and $11.6M above Last Year. 
• The total number of active customers was 103,000. 

Top 10 Racing events by turnover

Top 10 Sporting events by turnover