TAB NZ Trading Performance Update - June 2022

1 August 2022

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

The TAB continued to operate through its online and retail channels throughout June. 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 slightly down against budget in June, as was gross betting revenue (GBR), although the gross betting margin was broadly in line with expectations. While retail and hospitality was able to operate without capacity restrictions, softening economic conditions also played a factor as customers adjusted to the rising cost of living. There has also been a drop in starter numbers and/or across the three racing codes through April, May & June that has contributed to the variance in turnover.

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 and the current global financial climate, as to how trading conditions are affected and how this may or may not affect profit distributions.

Wagering Performance Summary

In June, the key performance results for TAB NZ were slightly down on the overall positive trends of the 2021/22 financial year. Turnover of $197.3m was 3.9% ($8.1m) below budget. Gross betting revenue (GBR) of $31.6m was slightly down on budget by 3.2% ($1.0m). The gross betting margin (GBM) of 16.0% was 0.1% above budget.

Racing

Average NZ thoroughbred starters per race was 10.7, slightly above the Year To Date (YTD) average of 10.6, while the peak turnover for a domestic meeting was $2.3m on 11 June at Ruakaka. Harness average starters per race was 10.2, matching the YTD average, while the peak meeting turnover of $1.3m was on 24 June at Addington. For greyhound racing, the average starters per race was 7.5, slightly below the YTD average of 7.6, while the peak turnover for a domestic meeting was $517k on 12 Jun at Manukau.

Sport

The top sporting event by turnover for June was the Super Rugby Pacific final between the Crusaders and Blues at $1.36m. Tennis was the leading in-play sporting code accounting for 24% of in-play turnover while Rugby League was the top pre-match singles sporting code accounting for 32% of pre-match turnover.

June Operational Performance

  • Reported Profit for the month was $11.0m, which was $1.7m below Budget.
  • Operating Expenses were $10.0m for the month, which was $0.2m below Budget. 
  • Year To Date (1 Aug 2021 to 30 June 2022) Reported Profit was $146.1m, which was $3.4m below Budget and $17.0m below last year.
  • Year To Date (1 Aug 2021 to 30 June 2022) Operating Expenses were $107.1m, which was $3.4m below Budget and $3.5m above last year. 

June Distributions

Racing Codes were paid $13.2m in distributions and other payments for June, versus $13.1m 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

11-Jun

Eagle Farm

R8

TAB Stradbroke Handicap (G1)

$411K

11-Jun

Eagle Farm

R6

Sky Racing Q22 (G2)

$371K

11-Jun

Ruakaka

R10

Bream Bay Painting

$328K

18-Jun

Te Rapa

R7

Animal Feed Barn 19th Birthday Mile

$323K

11-Jun

Eagle Farm

R7

Treasury Brisbane J.J. Atkins (G1)

$318K

4-Jun

Eagle Farm

R9

Channel 7 Queensland Oaks (G1)

$311K

4-Jun

Avondale

R7

ITM/GIB Progressive Winter Championship Series

$301K

25-Jun

Gate Pa

R8

Rhys Mischefski, Bayleys Whakatane Handicap

$290K

25-Jun

Gate Pa

R7

Team Wealleans Tauranga Classic

$289K

8-Jun

Matamata

R7

Fairview Motors Matamata 1400

$287K

 

Top 10 Sporting events by turnover

Date

Code

Event

Turnover

18-Jun

Rugby Union

Blues v Crusaders

$1.4M

26-Jun

Rugby League

New South Wales v Queensland

$780K

8-Jun

Rugby League

New South Wales v Queensland

$766K

10-Jun

Rugby Union

Crusaders v Chiefs

$615K

25-Jun

Rugby League

New Zealand v Tonga

$610K

11-Jun

Rugby Union

Blues v Brumbies

$591K

29-Jun

Rugby Union

Maori All Blacks v Ireland

$586K

17-Jun

Basketball

Boston Celtics v Golden State Warriors

$524K

12-Jun

Rugby League

New Zealand Warriors v Cronulla Sharks

$514K

14-Jun

Basketball

Golden State Warriors v Boston Celtics

$493K