TAB NZ Trading Performance Update - July 2022

30 August 2022

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

The TAB continued to operate through its online and retail channels throughout July. While the current Omicron outbreak continued to be a presence and factor through June, 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 July, as was gross betting revenue (GBR), although the gross betting margin was up on expectations. A combination of factors contributed to the result. These included softening economic conditions continuing to have an impact on discretionary spend for New Zealanders in line with the rising cost of living, ongoing mask restrictions in retail venues continue to deter a section of customers from visiting, race meetings being abandoned due to weather and a drop in starter numbers in two of the three racing codes in July; continuing on from a trend that began in April. Operating expenses were up on budget in July due to restructuring costs, and investments in customer retention and acquisition.

The TAB NZ Board has been able to maintain betting profit distributions at budgeted levels throughout the entire financial year. 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, the ongoing impact of masks in retail venues, 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.

Wagering Performance Summary

In July, the key performance results for TAB NZ were slightly down on the overall positive trends of the 2021/22 financial year. Turnover of $203.5m was 5.7% ($12.3m) below budget. Gross betting revenue (GBR) of $32.6m was down on budget by 4.8% ($1.6m). The gross betting margin (GBM) of 16.0% was 0.2 percentage points above budget.

Racing

Average NZ thoroughbred starters per race in July was 10.2, slightly below the FY22 average of 10.6, while the peak turnover for a domestic meeting was $2.6m on 30 July for the Taumarunui Raceday at Te Rapa. The average starters per harness race in July was 10.3, slightly above the FY22 average of 10.2, while the peak meeting turnover of $1.1m was on 22 July at Addington. For greyhound racing, the average starters per race in July was 7.5, slightly below the YTD average of 7.6, while the peak turnover for a domestic meeting was $493k on 14 July at Addington.

Sport

The top 3 sporting events by turnover for July were the three All Blacks tests against Ireland with a combined turnover of $5.0m. Basketball was the leading in-play sporting code accounting for 20% of in-play turnover while Rugby League was the top pre-match singles sporting code accounting for 34% of pre-match turnover.

July Operational Performance

  • Reported Profit for the month was $8.7m, which was $5.2m below Budget.
  • Operating Expenses were $11.9m for the month, which was $1.7m above Budget.
  • Full Year (1 Aug 2021 to 31 July 2022) Reported Profit was $154.8m, which was $8.5m below Budget and $23.5m below last year.
  • Full Year (1 Aug 2021 to 31 July 2022) Operating Expenses were $119.0m, which was $1.7m below Budget and $5.4m above last year.

July Distributions

Racing Codes were paid $14.6m in distributions and other payments for July, versus $14.3m 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

23-Jul

New Plymouth

R5

Powerworx Opunake Cup

$562K

30-Jul

Te Rapa

R8

Taumarunui RSA Gold Cup

$398K

2-Jul

Ruakaka

R8

Northbeam Strong Stuff

$396K

30-Jul

Te Rapa

R11

Woods Contracting 1400

$367K

30-Jul

Te Rapa

R9

NZ Farmers Livestock 1200

$346K

23-Jul

New Plymouth

R8

Seaton Park 1600

$344K

16-Jul

Ruakaka

R8

ITM/GIB Progressive Winter Champs Series Final

$335K

23-Jul

New Plymouth

R3

UBP Ltd 1800

$335K

30-Jul

Te Rapa

R10

Bob & Colleen Donaldson Memorial 1400

$334K

30-Jul

Te Rapa

R6

Courtesy Ford Ryder Stakes

$322K

 

Top 10 Sporting events by turnover

Date

Code

Event

Turnover

16-Jul

Rugby Union

New Zealand v Ireland

$1.9M

9-Jul

Rugby Union

New Zealand v Ireland

$1.6M

2-Jul

Rugby Union

New Zealand v Ireland

$1.5M

13-Jul

Rugby League

Queensland v New South Wales

$950K

3-Jul

Rugby League

New Zealand Warriors v Wests Tigers

$596K

29-Jul

Rugby League

New Zealand Warriors v Melbourne Storm

$584K

12-Jul

Rugby Union

Maori All Blacks v Ireland

$536K

28-Jul

Rugby League

Manly Sea Eagles v Sydney Roosters

$487K

23-Jul

Rugby League

Canberra Raiders v New Zealand Warriors

$469K

7-Jul

Rugby League

Cronulla Sharks v Melbourne Storm

$444K