TAB NZ Trading Performance Update - May 2022

1 July 2022

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

The TAB continued to operate successfully through its online and retail channels throughout May. The impact of the current Omicron outbreak eased slightly compared to April, with New Zealand at the Orange setting in the Covid-19 Protection Framework. This led to an uplift in foot traffic in the retail and hospitality sector through May, although not to the same levels of 12 months ago. Turnover dipped against budget in May, with the gross betting margin also slightly below budget, while softening economic conditions also played a factor as customers adjusted to the rising cost of living.

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 May, the key performance results for TAB NZ were in line with the overall positive trends of the 2021/22 financial year. Turnover of $202.7m was 3.6% ($7.5m) below budget and gross betting revenue (GBR) of $32.0m was down on budget by 4.4% ($1.5m). The gross betting margin (GBM) of 15.8% was 0.1% below 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 $1.9m on 14 May for the Campbell’s Infrastructure Cup Day at Arawa Park. Harness average starters per race was 9.8, below the YTD average of 10.2, while the peak meeting turnover of $1.1m was on 5 May 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 $453k on 13 May at Addington. 

Sport

The top sporting event by turnover for April was the Warriors vs Sharks NRL match on the 8th May at $0.58m. Tennis was the leading in-play sporting code accounting for 25% of in-play turnover while Rugby League was the top pre-match sporting code accounting for 24% of pre-match turnover.

May Operational Performance 

  • Reported Profit for the month was $10.8m, which was $2.4m below Budget.
  • Operating Expenses were $10.6m for the month, which was $0.4 above Budget. 
  • Year To Date (1 Aug 2021 to 31 May 2022) Reported Profit was $135.2m, which was $1.6m below Budget and $12.0m below last year.
  • Year To Date (1 Aug 2021 to 31 May 2022) Operating Expenses were $97.0m, which was $3.3m below Budget and $2.3m above last year. 

May Distributions

Racing Codes were paid $13.8m in distributions and other payments for May, versus $13.6m 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

28-May

Eagle Farm

R9

TAB Kingsford-Smith Cup (G1)

$328K

28-May

Eagle Farm

R8

Moet & Chandon Queensland Derby (G1)

$324K

14-May

Arawa Park

R6

Campbell Infrastructure Rotorua Cup (G3)

$320K

21-May

Te Rapa

R5

Dunstan Horsefeeds 1300

$317K

21-May

Trentham

R8

James Bull Holdings Rangitikei Gold Cup

$307K

21-May

Te Rapa

R8

The Animal Feed Barn Mile

$290K

14-May

Arawa Park

R8

Rydges Rotorua Stakes (G3)

$285K

14-May

Eagle Farm

R8

TAB Doomben 10,000 (G1)

$273K

21-May

Trentham

R9

TRC Toyota/ Waitomo Group 1600

$270K

7-May

Riccarton Park

R5

Berkley Stud Champagne Stakes

$262K

Top 10 Sporting events by turnover

Date

Code

Event

Turnover

8-May

Rugby League

Cronulla Sharks v New Zealand Warriors

$584K

30-May

Basketball

Miami Heat v Boston Celtics

$424K

28-May

Rugby League

New Zealand Warriors v Newcastle Knights

$394K

29-May

Football

Liverpool v Real Madrid

$380K

25-May

Basketball

Dallas Mavericks v Golden State Warriors

$372K

26-May

Rugby League

Melbourne Storm v Manly Sea Eagles

$371K

23-May

Basketball

Dallas Mavericks v Golden State Warriors

$364K

26-May

Basketball

Miami Heat v Boston Celtics

$360K

19-May

Basketball

Golden State Warriors v Dallas Mavericks

$355K

19-May

Rugby League

Newcastle Knights v Brisbane Broncos

$355K