Chief Stipe Posted November 27, 2020 Share Posted November 27, 2020 Racing Industry Transition Agency Releases Annual Results 27 November 2020 The Racing Industry Transition Agency (RITA) today reported a Net Profit before distributions of $162.5 million (which included a government relief grant of $41 million) for the year ending 31 July 2020 in its final report prior to its transition to TAB New Zealand on 1 August. TAB New Zealand (formerly RITA) Executive Chair, Dean McKenzie said the result reflected an extraordinary year for the business. “The year is best described as a game of two halves, with the first six months showing an improvement on the same period the year. However the industry then faced one of the toughest financial times in its history, with racing and global sport almost coming to a complete standstill with the arrival of the COVID-19 pandemic and lockdowns. “Despite the impact of COVID-19, RITA still was able to distribute $152.3 million to Racing and Sport, including $137.6 million to the racing codes, clubs, and racing integrity bodies. More than $14.7 million was returned to the sporting community over the course of the year. “The impact of very limited racing and sport during the peak of the crisis can’t be understated and RITA was faced with some difficult decisions to keep the business sustainable, including the removal of 230 roles, which was around 30 percent of staff. A number of other changes were also made, including not resuming Trackside Radio or Phonebet, and changes to Trackside production and presentation with a reduced number of cameras on course and presenters continuing to mainly operate from the studio,” said McKenzie. Total Turnover (Betting & Gaming) for the year of $2.6 billion was $141 million (-5 percent) below last year and $566 million below budget (-18 percent), while Gaming turnover was also impacted by COVID-19 with a decline of -10 percent to $461 million (-$52 million). Total Revenue, excluding the Government relief grant of $329 million was $19 million (-6 percent) below last year. Operating expenses declined year on year (saving $5 million or 4 percent against budget) which included a reduction of $7 million in staff expenses. “Away from the operational performance of the TAB, the year was historic with new legislation to reform the industry passed into law securing complete support across Parliament. Having such a broad consensus on legislation is rare, and will almost certainly mean the underlying framework of the industry is sustainable and enduring. “As we look towards the future, TAB NZ is positive the foundations are now firmly in place for the industry to build on. We look forward to working with the new Minister to complete the reform programme, new regulations, the appointment of a new Board, new Chief Executive and the establishment of the Racing Integrity Board.” RITA was established by the Racing Reform Act 2019 to support the reform of the New Zealand racing industry before transitioning to TAB New Zealand on 1 August 2020 following the passing of the Racing Industry Act 2020. tab21780 AR 2020 f web (1) (1).pdf Quote Link to comment Share on other sites More sharing options...
27 November 2020 The Racing Industry Transition Agency (RITA) today reported a Net Profit before distributions of $162.5 million (which included a government relief grant of $41 million) for the year ending 31 July 2020 in its final report prior to its transition to TAB New Zealand on 1 August. TAB New Zealand (formerly RITA) Executive Chair, Dean McKenzie said the result reflected an extraordinary year for the business. “The year is best described as a game of two halves, with the first six months showing an improvement on the same period the year. However the industry then faced one of the toughest financial times in its history, with racing and global sport almost coming to a complete standstill with the arrival of the COVID-19 pandemic and lockdowns. “Despite the impact of COVID-19, RITA still was able to distribute $152.3 million to Racing and Sport, including $137.6 million to the racing codes, clubs, and racing integrity bodies. More than $14.7 million was returned to the sporting community over the course of the year. “The impact of very limited racing and sport during the peak of the crisis can’t be understated and RITA was faced with some difficult decisions to keep the business sustainable, including the removal of 230 roles, which was around 30 percent of staff. A number of other changes were also made, including not resuming Trackside Radio or Phonebet, and changes to Trackside production and presentation with a reduced number of cameras on course and presenters continuing to mainly operate from the studio,” said McKenzie. Total Turnover (Betting & Gaming) for the year of $2.6 billion was $141 million (-5 percent) below last year and $566 million below budget (-18 percent), while Gaming turnover was also impacted by COVID-19 with a decline of -10 percent to $461 million (-$52 million). Total Revenue, excluding the Government relief grant of $329 million was $19 million (-6 percent) below last year. Operating expenses declined year on year (saving $5 million or 4 percent against budget) which included a reduction of $7 million in staff expenses. “Away from the operational performance of the TAB, the year was historic with new legislation to reform the industry passed into law securing complete support across Parliament. Having such a broad consensus on legislation is rare, and will almost certainly mean the underlying framework of the industry is sustainable and enduring. “As we look towards the future, TAB NZ is positive the foundations are now firmly in place for the industry to build on. We look forward to working with the new Minister to complete the reform programme, new regulations, the appointment of a new Board, new Chief Executive and the establishment of the Racing Integrity Board.” RITA was established by the Racing Reform Act 2019 to support the reform of the New Zealand racing industry before transitioning to TAB New Zealand on 1 August 2020 following the passing of the Racing Industry Act 2020.
Chief Stipe Posted November 27, 2020 Author Share Posted November 27, 2020 I see the Government bailout was $41m. I think they are being a bit creative saying it was Covid-19 relief! Especially when turnover was only down 5%! The fact is their creditors called and there were no reserves left. 1 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted November 28, 2020 Author Share Posted November 28, 2020 Anyone got any ideas on how they will make up the shortfall this year? Note the $41m needed WASN'T due to Covid-19. Arguably the shortfall was more than $41m because it doesn't include the Covid19 wage subsidy. In that regard if Turnover was only down 5% how did they qualify? Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted November 29, 2020 Author Share Posted November 29, 2020 Well I've been slowly making my way through the detail of the Annual Report. Even with the Government handout of $45 million RITA needed to borrow another $10m to fund operating activities. The total borrowed on the on-demand facility is now $45 million. That revolving credit facility is now maxed out and expires August 2021. I also note that you could say that RITA/TAB NZ is now under a form of statutory management with payments having to have prior approval of Government! Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted November 29, 2020 Author Share Posted November 29, 2020 Now this is where we are being screwed - the shoddy broadcasting deal and the FOB platform: Note 23: Non Cancellable Contracts Technical services associated with the broadcasting of racing, telecommunications and fixed odds betting platform. Quote Link to comment Share on other sites More sharing options...
Freda Posted November 29, 2020 Share Posted November 29, 2020 Be interesting to see what Grant Robertson makes of it all. Quote Link to comment Share on other sites More sharing options...
Joe Bloggs Posted November 29, 2020 Share Posted November 29, 2020 As a victim of a two million dollar misappropriation , I strongly push for a forensic investigation into the entire machinations of FOB platform and all the peripheral contracts signed over the past 5 years....or even further back if poss. I'm not alleging fraud, or even misappropriation, however, for transparency an independent body has to go through this entire farce and if anyone, and I mean anyone is found to be guilty of impropriety then the full force of the law has to apply.......surely. We can't keep fobbing this off as sheer incompetence, we just can't, otherwise we are all guilty of that horrible accusation, apathy. Quote Link to comment Share on other sites More sharing options...
RoyKCarollJ456 Posted December 15, 2020 Share Posted December 15, 2020 Be interesting to see what Grant Robertson makes of it all. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.