TAB NZ Trading Performance Update - September 2022

31 October 2022

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

The TAB operated through its online and retail channels throughout September. While the Omicron outbreak continued, the New Zealand Government dropped the COVID-19 Protection Framework/Traffic Light System from 13 September, easing all restrictions in retail and hospitality.

Turnover was slightly down against budget in September, as was gross betting revenue (GBR) and gross betting margin (GBM), but overall, the performance showed signs of improvement compared to August. While the easing of mask restrictions had a positive impact on retail traffic, other factors - including the continuing soft economic conditions, abandoned race meetings, and another month of a drop in starters across all three racing codes - contributed to the above results.

The Board will continue to factor in 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 September, the second 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 $212.7m was 2.0% ($4.4m) below budget. GBR of $33.6m was down on budget by 3.4% ($1.2m) and GBM of 15.8% was 0.2 percentage points below budget.

Racing

Average NZ thoroughbred starters per race was 10.1, below the FY22 average of 10.6, while the peak turnover for a domestic meeting was $3.2m on 10 September at Hastings. Harness average starters per race was 9.8, slightly below the FY22 average of 10.2, while the peak meeting turnover of $1.5m was on 30 September at Addington. For greyhound racing, the average starters per race was 7.3, slightly below the FY22 average of 7.6, while the peak turnover for a domestic meeting was $441k on 22 September at Addington.

Sport

The top 3 sporting events by turnover for September were the three All Blacks tests against Australia and Argentina with a combined turnover of $3.4m. Tennis was the leading in-play sporting code accounting for 26% of in-play turnover while rugby union and rugby league were the top pre-match singles sporting codes accounting for 30% and 24% of pre-match turnover respectively.

September Operational Performance 

  • Reported Profit for the month was $11.3m, which was $1.2m below Budget.
  • Operating Expenses were $10.5m for the month, which was $0.1m above Budget.¬†
  • Year to Date Reported Profit was $21.7m, which was $2.5m below Budget
  • Year to Date Operating Expenses were $21.0m, which was $0.5m above budget.

September Distributions

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

10-Sep

Hastings

R9

Tarzino Trophy (G1)

$616K

10-Sep

Hastings

R7

HB/PB Tbred Breeders Assn Gold Trail Stakes (G3)

$422K

17-Sep

Randwick

R7

Fujitsu General George Main Stakes (G1)

$398K

24-Sep

Ruakaka

R5

Kensington Refrigeration

$354K

10-Sep

Hastings

R10

Cancer Society - Donate Now 1400

$349K

17-Sep

Riccarton Park

R5

Double Tree By Hilton Karaka Handicap

$328K

24-Sep

Rosehill

R7

Racing & Sports Golden Pendant (G2)

$328K

30-Sep

Te Rapa

R6

Skycity Hamilton Waikato Cup Day 10 Dec Mile

$327K

24-Sep

Rosehill

R8

Chandon Golden Rose Stakes (G1)

$322K

17-Sep

Riccarton Park

R6

New Zealand Bloodstock Canterbury Belle Stakes

$317K

Top 10 Sporting events by turnover

Date

Code

Event

Turnover

24-Sep

Rugby Union

New Zealand v Australia

$1.2M

15-Sep

Rugby Union

Australia v New Zealand

$1.1M

3-Sep

Rugby Union

New Zealand v Argentina

$1.1M

24-Sep

Rugby League

Penrith Panthers v South Sydney Rabbitohs

$774K

11-Sep

Rugby League

Sydney Roosters v South Sydney Rabbitohs

$679K

17-Sep

Rugby League

Cronulla Sharks v South Sydney Rabbitohs

$679K

16-Sep

Rugby League

Parramatta Eels v Canberra Raiders

$617K

23-Sep

Rugby League

North Queensland Cowboys v Parramatta Eels

$594K

9-Sep

Rugby League

Penrith Panthers v Parramatta Eels

$497K

10-Sep

Rugby League

Melbourne Storm v Canberra Raiders

$494K