TAB NZ Trading Performance Update - August 2022

4 October 2022

TAB New Zealand (TAB NZ) provides the first monthly trading update for the 2022/2023 financial year, with the results and highlights for August 2022.

The TAB continued to operate through its online and retail channels throughout August. While the Omicron outbreak continued to be a presence and factor, New Zealand remained at the Orange setting in the Covid-19 Protection Framework with retail and hospitality operating through the month.

Turnover was down against budget in August, as was gross betting revenue (GBR) and gross betting margin (GBM). A combination of ongoing factors have contributed to August’s result, including the continuing soft economic conditions that impact our customers’ discretionary spend, mask restrictions in retail venues through the month deterring a section of customers from visiting, and race meetings being abandoned due to weather. August once again saw a drop in starters across all three racing codes, maintaining a trend that began in April. Operating expenses were slightly up on budget in August due to restructuring costs, and investments in customer retention and acquisition.

The Board will continue to factor in potential developments in New Zealand’s response to Covid-19, the current domestic and global financial climate, and the potential impact of any further ongoing trend of a drop in starter numbers as it assesses future distributions in the 2022-23 financial year.

Wagering Performance Summary

In August, the first month of the 2022/23 financial year, key performance results for TAB NZ were slightly down on the overall positive trends of the previous financial year. Turnover of $197.9m was 5.8% ($12.3m) below budget. GBR of $31.5m was down on budget by 6.0% ($2.0m) and GBM of 15.9% was 0.1 percentage points below budget.

Racing

Average NZ thoroughbred starters per race in August was 10.3, slightly below the FY22 average of 10.6, while the peak turnover for a domestic meeting was $2.4m on 27 August for the Waikato Stud Foxbridge Plate Raceday at Te Rapa. The average starters per harness race in July was 9.1, below the FY22 average of 10.2, while the peak meeting turnover of $0.95m was on 12 August at Addington. For greyhound racing, the average starters per race in August was 7.4, slightly below the YTD average of 7.6, while the peak turnover for a domestic meeting was $423k on 18 August at Addington.

Sport

The top 3 sporting events by turnover for August were the All Blacks test against Argentina ($0.98m) followed by the two All Blacks tests against South Africa ($0.7m and $0.8m). Tennis was the leading in-play sporting code accounting for 22% of in-play turnover while Rugby League was the top pre-match singles sporting code accounting for 32% of pre-match turnover.

August Operational Performance

  • Reported Profit for the month was $10.4m, which was $1.4m below Budget.
  • Operating Expenses were $10.5m for the month, which was $0.3m above Budget.

August Distributions

Racing Codes were paid $12.4m in distributions and other payments for August, versus $12.3m 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 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

27-Aug

Te Rapa

R6

Waikato Stud Foxbridge Plate (G2)

$500K

6-Aug

Riccarton Park

R8

Winning Edge Presentations 125th Winter Cup (G3)

$436K

27-Aug

Te Rapa

R5

Savabeel 1400

$394K

13-Aug

Riccarton Park

R10

Christchurch Casino 27th Annual SI Awards 16/09

$309K

20-Aug

Ruakaka

R7

Noel Reed Memorial

$300K

20-Aug

Randwick

R8

Winx Stakes (G1)

$295K

27-Aug

Te Rapa

R8

Super Seth Mile

$295K

27-Aug

Caulfield

R8

Magic Millions Memsie Stakes (G1)

$291K

20-Aug

Ruakaka

R1

10 September Harcourts for Hospice Maiden

$289K

20-Aug

Ruakaka

R8

Fireco

$284K

Top 10 Sporting events by turnover

Date

Code

Event

Turnover

27-Aug

Rugby Union

New Zealand v Argentina

$978K

14-Aug

Rugby Union

South Africa v New Zealand

$818K

7-Aug

Rugby Union

South Africa v New Zealand

$716K

21-Aug

Rugby League

Newcastle Knights v Canberra Raiders

$494K

12-Aug

Rugby League

New Zealand Warriors v Canterbury Bulldogs

$476K

26-Aug

Rugby League

Penrith Panthers v New Zealand Warriors

$474K

19-Aug

Rugby League

North Queensland Cowboys v New Zealand Warriors

$472K

18-Aug

Rugby League

South Sydney Rabbitohs v Penrith Panthers

$436K

20-Aug

Rugby League

Sydney Roosters v Wests Tigers

$431K

26-Aug

Rugby League

Melbourne Storm v Sydney Roosters

$414K