TAB New Zealand Update on Trading Performance - September

30 October 2020

Today TAB New Zealand (TAB NZ) provides the second trading update for the 2020/2021 financial year, with the results for September. In November, TAB NZ will provide a trading report covering wagering performance and key highlights for Quarter One. 

Wagering Performance Summary

Consistent with the performance in August, TAB NZ’s key results for September were ahead of budget and ahead of last year. The Business reported strong performance for the month across all products, with sport, international racing, and domestic racing all well ahead of budget. 

Domestic starter and field size numbers continued to be particularly strong for both equine codes. Thoroughbred and Harness starters were up 27% and 34% (monthly code report)  respectively on the same period last year, contributing to strong year-on-year domestic racing turnover growth of +21% year-on-year. Large field sizes, particularly for Thoroughbreds (12.3 v 9.8 last year), have also contributed to strong fixed odds margins that are higher than last year.

International racing grew by 11%. The strength of NZ racing betting activity, continues to support growth in overseas racing turnover where we continue to see increased levels of overlap in customer betting behaviour between jurisdictions.

Year-on-year comparisons for sports turnover (+7%) were impacted by Rugby World Cup last year (e.g. rugby turnover down 70%). However this was offset, as we continue to benefit from the currently condensed nature of the sports calendar with a number of competitions taking place outside their traditional cycle. In particular, the NBA playoffs and the NRL regular season stretching into September (when usually playoffs occur) resulted in significantly improved turnover. 

Customer numbers also remain positive with 99,100 active customers for the month, pleasingly above the average.

September Operational Performance Highlights

  • Net Profit for the month was $14.9m, which was $5.2m above budget. This is made up of; Betting Profit $13.4m (+$5.1m v Budget), Gaming Profit of $2m as budgeted and Racing Integrity RIU (RIU) of -$0.5m (against budget of -$0.6m).
  • Operating Expenses were $9.5m for the month which was $0.3m below budget (2.8%) and $2.2m below last year (19.2%).
  • Capital Expenditure spend for the month was $0.8m and included product development and the relocation of our Porirua TAB site.
  • Year To Date Reported Profit is $27.7m,  which is $7.0m above budget and $6.9m above last year.   

 

September Distributions

Racing Codes were paid $10.3m in actual distributions for September versus $9.4m 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.

September Wagering Performance Highlights 

  • Turnover of $210.7m was $34.4m above budget and $25.9m above last year.
  • Strong performance against budget was driven by all products; sport +$19.0m, international racing +$11.4m and domestic racing was +$1.6m and VIP +$2.4m.
  • Gross Betting Revenue (GBR) of $34.6m was $7.2m above budget and $5.4m above last year at a margin of 16.4%.
  • Domestic racing accounted for $61m in turnover, with overseas racing making up $82m of the month’s total turnover and sport delivering $68m in turnover.

Top 10 Sporting events by turnover

Date

Comp/Code

Event

Turnover

27-Sep

UFC

Israel Adesanya v Paulo Costa

$682K

5-Sep

NRL

NZ Warriors v Parramatta Eels

$601K

13-Sep

Rugby Union

North v South

$550K

13-Sep

NRL

Cronulla Sharks v NZ Warriors

$548K

3-Sep

NRL

Brisbane Broncos v Penrith Panthers

$494K

17-Sep

NRL

South Sydney Rabbitohs v Canterbury Bulldogs

$452K

26-Sep

NBA

Boston Celtics v Miami Heat

$417K

23-Sep

NBA

Denver Nuggets v Los Angeles Lakers

$416K

10-Sep

NRL

West Tigers v South Sydney Rabbitohs

$408K

25-Sep

NRL

South Sydney Rabbitohs v Sydney Roosters

$395K

 

Top 10 Racing events by turnover

Date

Venue

Race No

Race desc

Turnover

19-Sep

Hastings

R10

Tarzino Trophy (G1)

$695K

5-Sep

Te Rapa

R5

WRC Northland Breeders Stakes (G3)

$521K

5-Sep

Te Rapa

R8

Valachi Downs Foxbridge Plate (G2)

$503K

5-Sep

Te Rapa

R10

Zacinto Mile

$451K

26-Sep

New Plymouth

R7

NZB Ready To Run Sale Trainers Series

$393K

19-Sep

Hastings

R8

Hawke's Bay Breeders Gold Trail Stakes (G3)

$390K

26-Sep

New Plymouth

R10

Twilight Friday Races 23/10 & 20/11 1800

$354K

19-Sep

Caulfield

R8

Sir Rupert Clarke Stakes (G1)

$351K

5-Sep

Te Rapa

R7

US Navy Flag 1400

$341K

26-Sep

Caulfield

R8

Hyland Race Colours Underwood Stakes (G1)

$336K