TAB NZ Trading Performance Update - April 2022

25 May 2022

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

The TAB continued to operate successfully through its online and retail channels throughout April, 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, although this eased towards the end of April once New Zealand passed the peak of the Omicron outbreak.

Racing and sports betting turnover and profit performed well despite fewer customers interacting with the retail and hospitality sector. Turnover in April was above budget for the second month in a row and, combined with a gross betting margin above 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 indoor and 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. The Board will continue to factor in potential developments in New Zealand’s response to Covid-19, how these might affect trading conditions and what this may mean for profit distributions.

Wagering Performance Summary

In April, the key performance results for TAB NZ were in line with the overall positive trends of the 2021/22 financial year. Turnover of $221.7m was 0.8% ($1.8m) above budget and gross betting revenue (GBR) of $37.0m was up on budget by 5.3% ($1.9m). The gross betting margin (GBM) of 16.7% was 0.7% up on budget.

Racing

Average NZ thoroughbred starters per race was 10.5, slightly below the Year To Date (YTD) average of 10.6, while the peak turnover for a domestic meeting was $2.6m on 2 April for the Sires Produce Stakes Raceday at Awapuni. Harness average starters per race was 10.4, slightly above the YTD average of 10.2, while the peak meeting turnover of $1.2m was on 1 April at Addington. For greyhound racing, the average starters per race was 7.6, matching the YTD average, while the peak turnover for a domestic meeting was $432k on 14 April at Cambridge.

Sport

The top sporting event by turnover for April was the US Masters Golf tournament at $1.01m followed by the Warriors vs Storm NRL on the 25th April at $0.77m. Basketball was the leading in-play sporting code accounting for 32% of in-play turnover while Rugby League was the top pre-match sporting code accounting for 29% of pre-match turnover.

April Operational Performance

  • Reported Profit for the month was $15.3m, which was $0.4m above Budget.
  • Operating Expenses were $9.6m for the month, which was $0.4 below Budget.
  • Year To Date (1 Aug 2021 to 30 Apr 2022) Reported Profit was $124.4m, which was $0.8m above Budget and $14.7m below last year.
  • Year To Date (1 Aug 2021 to 30 Apr 2022) Operating Expenses were $86.4m, which was $3.6m below Budget and $1.0m above last year

April Distributions

Racing Codes were paid $16.3m in distributions and other payments for April, versus $15.8m 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

Date

Venue

Race No.

Race description

Turnover

2-Apr

Awapuni

R6

Courtesy Ford Manawatu Sires Produce Stakes (G1)

$496K

9-Apr

Randwick

R7

Schweppes Sydney Cup (G1)

$480K

2-Apr

Awapuni

R5

Bramco Granite & Marble Flying Stakes 1400

$439K

2-Apr

Randwick

R7

Bentley Australian Derby (G1)

$433K

23-Apr

Pukekohe

R7

Manco Easter Handicap (G3)

$426K

2-Apr

Randwick

R9

The Star Doncaster Mile (G1)

$404K

9-Apr

Randwick

R8

Longines Queen Elizabeth Stakes (G1)

$393K

2-Apr

Awapuni

R8

Resonant Premier 1600

$388K

30-Apr

Te Rapa

R5

Inglis Sales Cambridge Breeders' Stakes (G3)

$381K

16-Apr

Te Rapa

R7

Fiber Fresh NZ Thoroughbred Breeders' Stakes (G1)

$379K

Top 10 Sporting events by turnover

Date

Code

Event

Turnover

25-Apr

Rugby League

Melbourne Storm v New Zealand Warriors

$773K

11-Apr

Golf

US Masters 2022 - Outright Betting

$564K

17-Apr

Rugby League

Sydney Roosters v New Zealand Warriors

$529K

18-Apr

Rugby League

Parramatta Eels v Wests Tigers

$518K

15-Apr

Rugby Union

Crusaders v Blues

$493K

8-Apr

Rugby League

New Zealand Warriors v North Queensland Cowboys

$415K

22-Apr

Rugby League

Brisbane Broncos v Canterbury Bulldogs

$406K

10-Apr

Rugby League

Canterbury Bulldogs v Penrith Panthers

$398K

21-Apr

Rugby League

Cronulla Sharks v Manly Sea Eagles

$377K

3-Apr

Cricket

Australia Women v England Women

$377K