Chief Stipe Posted March 24, 2022 Share Posted March 24, 2022 24 March 2022 TAB New Zealand (TAB NZ) provides the seventh monthly trading update for the 2021/2022 financial year, with the results and highlights for February 2022. The TAB operated successfully through its online and retail channels throughout February. With New Zealand in the grips of the current Omicron outbreak, the continued impact on foot traffic in the retail and hospitality sector has caused a correlated downturn in gaming turnover at TAB retail outlets. This is reflected in final trading results for the month, which follows the year-to-date trend that has resulted from the impact of various regional lockdowns and corresponding venue closures. Racing and sports betting turnover and profit continued to hold up well despite this reduced customer mobility. Turnover was slightly down in February due to the reduction in foot traffic in retail and on-course, as well as a number of abandoned domestic race meetings, but improved gross betting margins on racing and sporting events ensured final returns in line with budget for the month. The TAB NZ Board has been able to maintain betting profit distributions at budgeted levels through the year to date. With funding from Betting Information Use Charges and the Betting Levy tracking above budget, this has meant that total distributions have been above budgeted expectations. As New Zealand enters new phases in its response to the Omicron variant of the Covid-19 virus, the Board will maintain a close watch on potential developments, any potential flow-on effect on trading conditions and any effect on profit distributions. At its February meeting, the Board agreed to repay the remaining $15m of debt, given the organisation’s strong cash position, leaving a nil balance owed. Wagering Performance Summary In February, the key performance results for TAB were mixed after a strong January and December. Subject to final audit, turnover of $184.9m was 2.3% ($4.4m) below budget but gross betting revenue (GBR) of $30.1m just shaded budget at a gross betting margin (GBM) of 16.3%, 0.4% up on the budgeted 15.9%. Racing Average NZ thoroughbred starters per race was 10.6, matching the Year To Date (YTD) average, while the peak turnover for a domestic meeting was $2.9m on 12 February for Legends Day at Te Rapa. Harness average starters per race was 9.9, slightly below the YTD average of 10.3, while the peak meeting turnover of $1.4m was on 7 February for the Amberley Trotting Club meeting at Rangiora. For greyhound racing, the average starters per race remains at 7.6, matching the YTD average, while the peak turnover for a domestic meeting was $418k on 6 February at Manukau. The total margin for the month across all New Zealand racing was 20.4%, above the YTD domestic racing margin of 18.7%. Overseas racing margin was 19.1%, above the YTD average of 18.5%. Sport Superbowl LVI led the sporting events in February with turnover of $754k followed by Adesanya vs Whittaker at UFC 271 with turnover of $546k. The total margin on in-play sport throughout February was 7.4%. Basketball and tennis dominated in-play performance, accounting for 59% of in-play turnover at 6.0% and 8.0% margin respectively. The pre-match singles margin was 10.8%, driven by basketball (30% of pre-match sports turnover) at a margin of 7.3% offset by football (20% of pre-match sports turnover) at 14.1%. Sports Multi margin was 16.6%. February Operational Performance Reported Profit for the month was $11.3m, which was $0.2m below Budget. Operating Expenses were $9.0m for the month, which was $0.8m below Budget. Year To Date (1 Aug 2021 to 28 Feb 2022) Reported Profit* was $96.9m, which was $1.9m above Budget and $11.9m below last year. Year To Date (1 Aug 2021 to 28 Feb 2022) Operating Expenses* were $66.5m, which was $3.1m below Budget and $2.4m above last year. * - Note: Year to date figures are subject to final audit. February Distributions Racing Codes were paid $12.2m in distributions and other payments for February, versus $11.8m 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 12-Feb Te Rapa R7 Herbie Dyke Stakes (G1) $538K 19-Feb Ellerslie R7 AJC Avondale Guineas (G2) $537K 19-Feb Ellerslie R6 Mainland 1600 $368K 19-Feb Ellerslie R4 Wallen Concreting Avondale Cup (G2) $365K 26-Feb Otaki R7 El Cheapo Cars WFA Classic (G1) $360K 19-Feb Ellerslie R8 Ecochill 2100 $359K 26-Feb Matamata R9 The Rich Hill @ Karaka 2022 $335K 5-Feb Wingatui R8 White Robe Lodge (G3) $334K 19-Feb Ellerslie R5 Dads Pies 1500 $331K 26-Feb Matamata R8 Matamata Veterinary Services Kaimai Stakes $327K Top 10 Sporting events by turnover Date Code Event Turnover 14-Feb American Football Cincinnati Bengals v Los Angeles Rams $754K 13-Feb MMA Israel Adesanya v Robert Whittaker $546K 25-Feb Rugby Union Highlanders v Crusaders $346K 26-Feb Rugby Union Blues v Hurricanes $335K 20-Feb Cricket Australia v Sri Lanka $330K 19-Feb Rugby Union Crusaders v Hurricanes $322K 15-Feb Basketball Los Angeles Clippers v Golden State Warriors $246K 21-Feb Basketball Team LeBron v Team Durant (All-Star Game) $216K 19-Feb Rugby Union Chiefs v Highlanders $211K 13-Feb MMA Derrick Lewis v Tai Tuivasa $194K Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted March 24, 2022 Author Share Posted March 24, 2022 13 minutes ago, Chief Stipe said: February Operational Performance Reported Profit for the month was $11.3m, which was $0.2m below Budget. Operating Expenses were $9.0m for the month, which was $0.8m below Budget. Year To Date (1 Aug 2021 to 28 Feb 2022) Reported Profit* was $96.9m, which was $1.9m above Budget and $11.9m below last year. Year To Date (1 Aug 2021 to 28 Feb 2022) Operating Expenses* were $66.5m, which was $3.1m below Budget and $2.4m above last year. Note how the table comparison is Actual versus Budget which shows a positive variation whereas the narrative shows that Year To Date Profit is $11.9m DOWN on last year. Also Operating Expenses are ABOVE last year by $2.4m. Quote Link to comment Share on other sites More sharing options...
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