TAB NZ Trading Performance Update - September 2021

26 October 2021

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

The TAB continued to be able to operate successfully through its online and some retail channels during the heightened Alert Levels through September, although as discussed below, there were some revenue-related impacts due to the TAB’s retail and gaming networks in Auckland remaining closed, and physical distancing requirements in other parts of New Zealand. These challenges have continued through to October, as Alert Level 3 restrictions have continued in Auckland and were re-introduced in parts of the Waikato. 

Notwithstanding these challenges, the TAB and industry is maintaining a much more robust position financially than during last year’s nationwide lockdown. However, as the Government response to Covid-19 continues to adapt and evolve, TAB NZ will continue to act with caution when assessing future potential trading conditions and how this will flow on to profit distribution. 

Despite the impact of ongoing lockdowns in parts of New Zealand on trading in September, the TAB NZ Board has continued to hold distributions at budgeted levels pending further clarification of Alert Level implications over the coming weeks. Although betting performance has been relatively strong through the first half of October, continued closure of Auckland retail and gaming in particular present material challenges for the business and will require continued monitoring and further assessment at the appropriate time. 

Wagering Performance Summary

In September, the key performance results for TAB were mixed due to the heightened Alert Levels. While turnover was down, gross betting revenue was slightly up on Budget, supported by a slight percentage increase in Gross Betting Margin (against Budget and September last year). Turnover of $191.9m was $9.4m below Budget and $18.8m below last year. Total Gross Betting Revenue was $33.7m, $1.5m above Budget and at a margin of 17.6% percent. 

Racing

Average NZ thoroughbred starters per race was 9.8, below the FY21 average of 11.3, while the peak turnover for a domestic meeting was $3.24m on 18 September for the Tarzino Trophy Daffodil Raceday. Harness average starters per race was 9.9, below the FY21 average of 10.8, while the peak meeting turnover of $1.0m was on 10 September at Addington. For greyhound racing, the average starters per race was 7.6, matching the FY21 average, while the peak turnover for a domestic meeting was $387k on 30 September at Addington. The total margin for all New Zealand racing was 19.4 percent, above the FY21 New Zealand racing margin of 18.2 percent. Overseas racing margin was 19.8 percent, slightly above the FY21 average of 19.2 percent.

Sport

The top sporting events by turnover this month were the four All Blacks test matches ($3.0m across all four games) and the two NRL preliminary finals ($1.3m across both games). The margin on options selected by customers across sports continued to vary with the in-play sports delivering a gross betting margin of 8.2 percent. Football and tennis were the main drivers of in-play performance, accounting for 39 percent of in-play turnover at 8.9 and 8.8 percent margin respectively. The pre-match singles margin was 14.7 percent, driven by rugby league (19 percent of pre-match turnover) at a margin of just under 24 percent and rugby union (20 percent of sports turnover) at 20 percent. Sports Multi margin was at 28.1 percent.

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September Operational Performance 

  • Reported Profit for the month was $13.8m, which was $1.6m above Budget.
  • Operating Expenses were $9.1m for the month, which was $0.8m below Budget. 
  • Year To Date (1 Aug 2021 to 30 Sep 2021) Reported Profit was $22.5m which was $1.4m below Budget and $5.1m below last year. 
  • Year To Date ((1 Aug 2021 to 30 Sep 2021) Operating Expenses were $18.2M, which was $1.4m below Budget and $0.1m below last year. 

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September Distributions

Racing Codes were paid $12.6m in distributions and other payments for September, versus $12.6m 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

18-Sep

Hastings

R9

Tarzino Trophy (G1)

$653K

18-Sep

Caulfield

R8

Sir Rupert Clarke Stakes (G1)

$508K

4-Sep

Te Rapa

R9

War Decree 1200

$439K

18-Sep

Hastings

R7

Hawke's Bay Breeders' Gold Trail Stakes (G3)

$412K

25-Sep

Rosehill

R7

Keeneland Golden Pendant (G2)

$390K

11-Sep

Flemington

R8

PFD Food Services Makybe Diva Stakes (G1)

$376K

18-Sep

Randwick

R7

Fujitsu General George Main Stakes (G1)

$355K

11-Sep

Flemington

R6

Furphy Let's Elope Stakes (G2)

$352K

18-Sep

Hastings

R10

Brew's & 'Que's Tickets On Sale Now

$351K

25-Sep

Rosehill

R8

XXXX Golden Rose Stakes (G1)

$335K

 

Top 10 Sporting events by turnover

Date

Code

Event

Turnover

25-Sep

Rugby Union

New Zealand v South Africa

$933K

5-Sep

Rugby Union

Australia v New Zealand

$800K

24-Sep

Rugby League

South Sydney Rabbitohs v Manly Sea Eagles

$664K

12-Sep

Rugby Union

New Zealand v Argentina

$663K

18-Sep

Rugby Union

Argentina v New Zealand

$617K

25-Sep

Rugby League

Melbourne Storm v Penrith Panthers

$605K

17-Sep

Rugby League

Manly Sea Eagles v Sydney Roosters

$544K

18-Sep

Rugby League

Penrith Panthers v Parramatta Eels

$537K

10-Sep

Rugby League

Melbourne Storm v Manly Sea Eagles

$517K

11-Sep

Rugby League

Penrith Panthers v South Sydney Rabbitohs

$468K