TAB NZ Trading Performance Update - October 2021

25 November 2021
TAB New Zealand (TAB NZ) provides the third monthly trading update for the 2021/2022 financial year, with the results and highlights for October 2021

The TAB continued to be able to operate successfully through its online and some retail channels through October, although with Alert Levels changing for various parts of New Zealand due to Covid-19, there were some revenue-related impacts. These were due to the TAB’s retail and gaming networks in Auckland and Waikato remaining closed through October, and physical distancing requirements in other parts of New Zealand. These challenges have continued through to November, although easing in Alert Level 3 restrictions for retail have allowed some outlets in Auckland and Waikato to open as the month has progressed.

October produced a milestone for the TAB in the form of the highest turnover on a Saturday in its 70-year history. Saturday, 16 October, which featured Group 1 racing at Hastings as well as the Caulfield Cup in Melbourne and the Everest in Sydney, turned over $17 million - $5.4 million up on Budget - from 1.37 million bets through the day. 
 
The TAB and industry continue to maintain a more robust position financially compared to during 2020’s nationwide lockdown. The Government response to Covid-19 has changed in recent months, and will continue to evolve through late 2021 and early 2022 with increased vaccination rates in the population. Due to these changing conditions, TAB NZ will keep a close watch on future potential trading conditions and the resulting flow on to profit distribution. 

Despite the impact of ongoing lockdowns in parts of New Zealand on trading in October, the TAB NZ Board has continued to hold distributions at budgeted levels through the first quarter. Although betting performance has continued to hold up well through early November, the varying restrictions for retail and gaming outlets in areas at various Alert Level 3 settings continue to be a challenge for the business. TAB NZ will continue to monitor and assess betting performance. 

Wagering Performance Summary 

In October, the key performance results for TAB held firm despite heightened Alert Levels. Turnover of $226.9 was slightly up on Budget (by $0.3m)  and Gross Betting Revenue was on par with Budget, supported by a slight percentage increase in Gross Betting Margin (against Budget and October last year). Total Gross Betting Revenue was $36.6m, in line with Budget and at a margin of 16.1 percent. 

Racing
Average NZ thoroughbred starters per race was 10.8, above the Year To Date (YTD) average of 10.2, while the peak turnover for a domestic meeting was $3.77m on 16 October for the Livamol Classic raceday in Hastings. Harness average starters per race was 10.4, above the YTD average of 9.9, while the peak meeting turnover of $1.33m was on 25 October for the Labour Day races at Ashburton. For greyhound racing, the average starters per race was 7.5, matching the YTD average, while the peak turnover for a domestic meeting was $395k on 28 October at Addington. The total margin for all New Zealand racing was 18.1 percent, slightly below the YTD New Zealand racing margin of 18.3 percent. Overseas racing margin was 18.8 percent, below the YTD average of 19.3 percent.

Despite the impact of ongoing lockdowns in parts of New Zealand on trading in October, the TAB NZ Board has continued to hold distributions at budgeted levels through the first quarter. Although betting performance has continued to hold up well through early November, the varying restrictions for retail and gaming outlets in areas at various Alert Level 3 settings continue to be a challenge for the business. TAB NZ will continue to monitor and assess betting performance.

Sport
The top five sporting events by turnover this month were the NRL Grand Final ($1.1m), two All Blacks Tests (versus Springboks, $837k and USA, $391k), Wallabies versus Argentina ($365k) and Fury versus Wilder boxing ($348k).  The margin on options selected by customers across sports continued to vary with the in-play sports delivering a gross betting margin of 7.3 percent. Basketball, Football and tennis were the main drivers of in-play performance, accounting for 60 percent of in-play turnover at 7.4, 6.7 and 7.6 percent margin respectively. The pre-match singles margin was 11.1 percent, driven by basketball (15 percent of pre-match turnover) at a margin of just under 17 percent offset by rugby union (20 percent of sports turnover) at 7.6 percent. Sports Multi margin was 21.1 percent.

October Operational Performance 

  • Reported Profit for the month was $13.8m, which was $0.9m below Budget.
  • Operating Expenses were $9.5m for the month, which was $0.3m below Budget. 
  • Year To Date (1 Aug 2021 to 31 Oct 2021) Reported Profit was $36.4m, which was $2.3m below Budget and $7.1m below last year. 
  • Year To Date (1 Aug 2021 to 31 Oct 2021) Operating Expenses were $27.8m, which was $1.7m below Budget and $0.6m above last year.

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October Distributions

Racing Codes were paid $16.4m in distributions and other payments for October, versus $15.7m 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.

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Top 10 Racing events by turnover

Date

Venue

Race No.

Race description

Turnover

16-Oct

Caulfield

R9

Carlton Draught Caulfield Cup (G1)

$1,011K

23-Oct

Moonee Valley

R9

Cox Plate (G1)

$862K

16-Oct

Randwick

R7

The TAB Everest

$695K

30-Oct

Flemington

R6

Penfolds Victoria Derby (G1)

$694K

16-Oct

Hastings

R8

Livamol Classic (G1)

$610K

30-Oct

Rosehill

R7

XXXX Golden Eagle

$497K

2-Oct

Randwick

R8

TAB Epsom (G1)

$493K

30-Oct

Flemington

R5

TAB Empire Rose Stakes (G1)

$442K

16-Oct

Hastings

R10

Bostock NZ Spring Carnival Finale

$426K

30-Oct

Flemington

R8

Kennedy Cantala (G1)

$407K

 

Top 10 Sporting events by turnover

Date

Code

Event

Turnover

3-Oct

Rugby League

Penrith Panthers v South Sydney Rabbitohs

$1,140K

2-Oct

Rugby Union

South Africa v New Zealand

$837K

24-Oct

Rugby Union

USA v New Zealand

$392K

2-Oct

Rugby Union

Argentina v Australia

$366K

10-Oct

Boxing

Tyson Fury v Deontay Wilder

$348K

31-Oct

Rugby Union

Wales v New Zealand

$306K

22-Oct

Basketball

Golden State Warriors v Los Angeles Clippers

$266K

20-Oct

Basketball

Los Angeles Lakers v Golden State Warriors

$232K

9-Oct

Rugby Union

Hawkes Bay v Tasman

$232K

29-Oct

Rugby Union

Canterbury v Tasman

$226K