Chief Stipe Posted December 23, 2020 Share Posted December 23, 2020 TAB New Zealand (TAB NZ) provides the latest monthly trading update for the 2020/2021 financial year, with the results and highlights for November 2020. Wagering Performance Summary November was a solid month for TAB NZ with a reported profit before distributions of $17.7M. Results from Melbourne Cup day and NZ Cup Week in Christchurch, coupled with full domestic racing fields, continued TAB operational efficiencies and the ongoing resumption of sporting events around the world, were all major contributors to the strong result. Racing Melbourne Cup day resulted in TAB’s highest ever turnover on a Melbourne Cup day of $26.6M (up 14 percent on last year). It was also the highest ever GBR for a Melbourne Cup day of $6.2M. The race itself generated $11.5M in turnover exceeding the previous high, set in 2018, of $10.3M. Resulting turnover of $11.3M from the IRT NZ Trotting Cup day, was also the highest ever for a Cup day, exceeding the previous record of $10.8M in 2018 by 5 percent. The day attracted 40,000+ account customers which was 8 percent higher than last year's total. Domestic starter and field size numbers have continued to be strong with Domestic racing turnover up $13.8M against budget. Large field sizes for the Thoroughbred code, particularly throughout NZ Cup Week, again contributed to strong margins. Turnover on overseas racing also continues to perform above expectation at 21 percent above target for the month. Of particular note was Australian Thoroughbreds up 23 percent, driven by a strong result on the Melbourne Cup (44 percent) with that single race representing almost 15 percent of overseas fixed racing revenue for the month. Sport Rugby League’s State of Origin, which is normally played during the NRL regular season but was rescheduled to be held at the end of the season generated around $100k-$200k more per game than the fixtures did during the 2019 season. International cricket was also back with the first T20 generating $800k in turnover, up $300k on the last limited overs match played in New Zealand before lockdown. --------------------- November Operational Performance Net Profit for the month was $17.7M, which was $4.9M above budget and $1.4M above last year. Operating Expenses for the month were $10.0M for the month which was $0.1M above Budget and $1.5m below Last Year. Year To Date (1 Aug to 30 Nov) Operating Profit was $61.2M which was $16.3M above Budget and $11.4M above Last Year. Year To Date (1 Aug to 30 Nov) Operating Costs were $38.8M which was $577k above Budget and $8.7M below Last Year. November Distributions Racing Codes were paid $14.4m in actual distributions for November versus $12.9M 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 User Charge (BIUC) in the table below), and Betting Duty repeal. November Wagering Performance Turnover of $232.6M was $27.6M above Budget and was driven by all products; Sport +$3.9M, International Racing +$9.6M, Domestic Racing +$11.4M and VIP +$2.7M. Gross Betting Revenue was $41.6M, $8.7M above Budget and $6.7M above Last Year. The total active customer base to have bet in November was 140,500 customers. Top 10 Sporting events by turnover Date Code Event Turnover 14-Nov Rugby Union New Zealand v Argentina $1.02M 7-Nov Rugby Union Australia v New Zealand $1.01M 28-Nov Rugby Union Argentina v New Zealand $892K 18-Nov Rugby League Queensland v New South Wales $762K 4-Nov Rugby League Queensland v New South Wales $629K 11-Nov Rugby League New South Wales v Queensland $609K 21-Nov Rugby Union Australia v Argentina $461K 27-Nov Cricket New Zealand v West Indies $388K 29-Nov Cricket Australia v India $312K 27-Nov Cricket Australia v India $311K Top 10 Racing events by turnover Date Venue Race No Race desc Turnover 3-Nov Flemington R7 Lexus Melbourne Cup (G1) $11.5M 10-Nov Addington R11 IRT New Zealand Trotting Cup Pace (G1) $1.6M 14-Nov Riccarton Park R10 Christchurch Casino 157th New Zealand Cup (G3) $1.1M 14-Nov Riccarton Park R12 Speight's Premier $840K 14-Nov Riccarton Park R8 Barneswood Farm 48th Nz 1000 Guineas (G1) $717K 3-Nov Flemington R10 MSS Security Sprint $639K 7-Nov Riccarton Park R8 Al Basti Equiworld 48th NZ 2000 Guineas (G1) $602K 11-Nov Riccarton Park R11 16th Coupland's Bakeries Mile (G2) $574K 10-Nov Addington R8 Woodlands Stud Sires' Stakes Final MBL Pace (G1) $567K 10-Nov Addington R13 First Direct Taxis Mobile Pace $546K Quote Link to comment Share on other sites More sharing options...
nomates Posted December 23, 2020 Share Posted December 23, 2020 On the news a couple of nights ago they reported that last year kiwis spent 7 billion on overseas travel in 2019 , this year 1.9 billion , so 5 billion spare money to be spent . The sale of luxury cars had increased markedly and that boat yards were running out of stock , jewellers are doing a booming trade , along with the very buoyant housing market it shows kiwis are spending up big with that spare cash . I would say looking at the figures above that racing , both gambling and ownership , is riding that wave as well . Hopefully it continues and that the leadership of racing manages this windfall properly . Racing needed a fairy godmother , perhaps this is it . Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted December 24, 2020 Author Share Posted December 24, 2020 12 minutes ago, nomates said: I would say looking at the figures above that racing , both gambling and ownership , is riding that wave as well . Hopefully it continues and that the leadership of racing manages this windfall properly . Racing needed a fairy godmother , perhaps this is it . As I've said before the devil is in the detail. The '21 budget is set to return less to the industry than the year before. TAB NZ (aka NZRB/RITA) have shifted a significant amount of cost to the codes administration. So when they say they distributed "more than budget" to the industry codes it is a bit of smoke and mirrors. From my analysis they are still not making anywhere enough to pay the three contracts that they are hooked into and which they needed a Government bailout to pay or face insolvency. They also have to pay the $35m overdraft back next August or somehow refinance it. With regard to your travel spending analysis - yes you are correct. Why do you think the Government is holding off on a travel bubble with the Cook Islands? It want's the $150 billion it printed spent internally. However that money sloshing around has hotted up the property market even further and luxury goods like new cars, white/black ware - which is all adding to a pressure cooker of inflation. Add in an increase in fuel prices around the end of the first quarter next year, plus a rapidly declining job market and you will start to see a real recession kick in. Quote Link to comment Share on other sites More sharing options...
nomates Posted December 24, 2020 Share Posted December 24, 2020 Hate to think what racings position would be the last few months without this current spending spree . I'm sure the leadership are patting themselves on the back for the supposed improvements in turnover . Cant see the travel bubble happening anytime soon anyway , at least until Aussie get the thing under long term control . On top of that , even if they do get a bubble going i don't believe there will be a rush to travel , people still very cautious . As for the housing market , well cant see it slowing at all , upwards of 500k kiwis possibly returning in the next 5 years ,even if only 20% are cashed up and want to purchase a house , it's going to put huge pressure on the already tight housing pool . Even treasury came out last week saying housing market will increase 35% in next 5 years . I can get petrol in Levin for $1.66 at present , was $2.30+ not so long ago , can't see it going back there in the short term . I talked to 3 people in Scotland this week , they are very envious of us , wouldn't wish their situation on any one . We should all be very grateful that we live in NZ and are free to live our lives as normal , we take things too much for granted sometimes . I for one am thankful that my parents made the decision to come here 50 years ago . 1 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted December 24, 2020 Author Share Posted December 24, 2020 6 minutes ago, nomates said: As for the housing market , well cant see it slowing at all , upwards of 500k kiwis possibly returning in the next 5 years ,even if only 20% are cashed up and want to purchase a house , it's going to put huge pressure on the already tight housing pool . Even treasury came out last week saying housing market will increase 35% in next 5 years . I'm not so sure Kiwis will rush back. I'd be waiting to see what the Government's plan is to wean us off this island of isolation. Vaccinating everyone isn't going to to do it. In other words we have just forestalled our pain. 7 minutes ago, nomates said: I can get petrol in Levin for $1.66 at present , was $2.30+ not so long ago , can't see it going back there in the short term . You watch what happens when China, the USA and Europe ramp up their economies again. I'm picking when they reach herd immunity (some countries are there already) in the first quarter of next year you'll see a huge surge forward. Why do you think China has been stockpiling cheap oil? NZ will be extremely vulnerable especially since we cut oil and gas exploration and have made the stupid strategic decision to close our refinery down. 12 minutes ago, nomates said: I talked to 3 people in Scotland this week , they are very envious of us , wouldn't wish their situation on any one . We should all be very grateful that we live in NZ and are free to live our lives as normal , we take things too much for granted sometimes . I for one am thankful that my parents made the decision to come here 50 years ago . It is only a temporary situation. It will turn and turn rapidly. We have been led down the garden path but this Government and some very suspect scientific advisors (watch this space!). The latter have been playing out an experiment and need to be exposed. Quote Link to comment Share on other sites More sharing options...
nomates Posted December 24, 2020 Share Posted December 24, 2020 16 minutes ago, Chief Stipe said: I'm not so sure Kiwis will rush back. I'd be waiting to see what the Government's plan is to wean us off this island of isolation. Vaccinating everyone isn't going to to do it. In other words we have just forestalled our pain. You watch what happens when China, the USA and Europe ramp up their economies again. I'm picking when they reach herd immunity (some countries are there already) in the first quarter of next year you'll see a huge surge forward. Why do you think China has been stockpiling cheap oil? NZ will be extremely vulnerable especially since we cut oil and gas exploration and have made the stupid strategic decision to close our refinery down. It is only a temporary situation. It will turn and turn rapidly. We have been led down the garden path but this Government and some very suspect scientific advisors (watch this space!). The latter have been playing out an experiment and need to be exposed. Well after reading that summation i'm off to top myself , it was good while it lasted , cheerio . Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted December 24, 2020 Author Share Posted December 24, 2020 12 minutes ago, nomates said: Well after reading that summation i'm off to top myself , it was good while it lasted , cheerio . That's a bit severe. It is all easily fixed - reignite the oil and gas exploration, invest in the oil refinery, stop wasting borrowed money on non productive projects that generate no wealth, support our primary production sector rather than trying to cut them down all the time, shift bureaucrats out of the super government departments like MPI and MBIE and into productive industries, reinforce our identity as NEW ZEALANDERS and stop this woke nonsense, invest in infrastructure that allows us to work quicker, safer and more productively..... 1 1 Quote Link to comment Share on other sites More sharing options...
nomates Posted December 24, 2020 Share Posted December 24, 2020 7 minutes ago, Chief Stipe said: That's a bit severe. All good , i'll make hay while the sun shines , although it has pissed down here most of the day . Merry Xmas to all , and plenty of winners for everybody . Quote Link to comment Share on other sites More sharing options...
curious Posted December 24, 2020 Share Posted December 24, 2020 1 hour ago, nomates said: All good , i'll make hay while the sun shines , although it has pissed down here most of the day . Merry Xmas to all , and plenty of winners for everybody . Think I'll cut the hay in the morning. Ground is drying out now. Happy holidays to all. Quote Link to comment Share on other sites More sharing options...
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