Chief Stipe Posted August 1, 2022 Share Posted August 1, 2022 TAB NZ Trading Performance Update - June 2022 1 August 2022 TAB New Zealand (TAB NZ) provides the eleventh monthly trading update for the 2021/2022 financial year, with the results and highlights for June 2022. The TAB continued to operate through its online and retail channels throughout June. While the current Omicron outbreak continued to be a presence and factor through June, New Zealand remained at the Orange setting in the Covid-19 Protection Framework with retail and hospitality operating through the month. Turnover was slightly down against budget in June, as was gross betting revenue (GBR), although the gross betting margin was broadly in line with expectations. While retail and hospitality was able to operate without capacity restrictions, softening economic conditions also played a factor as customers adjusted to the rising cost of living. There has also been a drop in starter numbers and/or across the three racing codes through April, May & June that has contributed to the variance in turnover. 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. The Board will continue to factor in potential developments in New Zealand’s response to Covid-19 and the current global financial climate, as to how trading conditions are affected and how this may or may not affect profit distributions. Wagering Performance Summary In June, the key performance results for TAB NZ were slightly down on the overall positive trends of the 2021/22 financial year. Turnover of $197.3m was 3.9% ($8.1m) below budget. Gross betting revenue (GBR) of $31.6m was slightly down on budget by 3.2% ($1.0m). The gross betting margin (GBM) of 16.0% was 0.1% above budget. Racing Average NZ thoroughbred starters per race was 10.7, slightly above the Year To Date (YTD) average of 10.6, while the peak turnover for a domestic meeting was $2.3m on 11 June at Ruakaka. Harness average starters per race was 10.2, matching the YTD average, while the peak meeting turnover of $1.3m was on 24 June at Addington. For greyhound racing, the average starters per race was 7.5, slightly below the YTD average of 7.6, while the peak turnover for a domestic meeting was $517k on 12 Jun at Manukau. Sport The top sporting event by turnover for June was the Super Rugby Pacific final between the Crusaders and Blues at $1.36m. Tennis was the leading in-play sporting code accounting for 24% of in-play turnover while Rugby League was the top pre-match singles sporting code accounting for 32% of pre-match turnover. June Operational Performance Reported Profit for the month was $11.0m, which was $1.7m below Budget. Operating Expenses were $10.0m for the month, which was $0.2m below Budget. Year To Date (1 Aug 2021 to 30 June 2022) Reported Profit was $146.1m, which was $3.4m below Budget and $17.0m below last year. Year To Date (1 Aug 2021 to 30 June 2022) Operating Expenses were $107.1m, which was $3.4m below Budget and $3.5m above last year. June Distributions Racing Codes were paid $13.2m in distributions and other payments for June, versus $13.1m 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. Quote Link to comment Share on other sites More sharing options...
1 August 2022 TAB New Zealand (TAB NZ) provides the eleventh monthly trading update for the 2021/2022 financial year, with the results and highlights for June 2022. The TAB continued to operate through its online and retail channels throughout June. While the current Omicron outbreak continued to be a presence and factor through June, New Zealand remained at the Orange setting in the Covid-19 Protection Framework with retail and hospitality operating through the month. Turnover was slightly down against budget in June, as was gross betting revenue (GBR), although the gross betting margin was broadly in line with expectations. While retail and hospitality was able to operate without capacity restrictions, softening economic conditions also played a factor as customers adjusted to the rising cost of living. There has also been a drop in starter numbers and/or across the three racing codes through April, May & June that has contributed to the variance in turnover. 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. The Board will continue to factor in potential developments in New Zealand’s response to Covid-19 and the current global financial climate, as to how trading conditions are affected and how this may or may not affect profit distributions. Wagering Performance Summary In June, the key performance results for TAB NZ were slightly down on the overall positive trends of the 2021/22 financial year. Turnover of $197.3m was 3.9% ($8.1m) below budget. Gross betting revenue (GBR) of $31.6m was slightly down on budget by 3.2% ($1.0m). The gross betting margin (GBM) of 16.0% was 0.1% above budget. Racing Average NZ thoroughbred starters per race was 10.7, slightly above the Year To Date (YTD) average of 10.6, while the peak turnover for a domestic meeting was $2.3m on 11 June at Ruakaka. Harness average starters per race was 10.2, matching the YTD average, while the peak meeting turnover of $1.3m was on 24 June at Addington. For greyhound racing, the average starters per race was 7.5, slightly below the YTD average of 7.6, while the peak turnover for a domestic meeting was $517k on 12 Jun at Manukau. Sport The top sporting event by turnover for June was the Super Rugby Pacific final between the Crusaders and Blues at $1.36m. Tennis was the leading in-play sporting code accounting for 24% of in-play turnover while Rugby League was the top pre-match singles sporting code accounting for 32% of pre-match turnover. June Operational Performance Reported Profit for the month was $11.0m, which was $1.7m below Budget. Operating Expenses were $10.0m for the month, which was $0.2m below Budget. Year To Date (1 Aug 2021 to 30 June 2022) Reported Profit was $146.1m, which was $3.4m below Budget and $17.0m below last year. Year To Date (1 Aug 2021 to 30 June 2022) Operating Expenses were $107.1m, which was $3.4m below Budget and $3.5m above last year. June Distributions Racing Codes were paid $13.2m in distributions and other payments for June, versus $13.1m 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.
Chief Stipe Posted August 1, 2022 Author Share Posted August 1, 2022 Profit $17m below last year. I guess the codes will be digging into their pockets to fund the RIB shortfall in funding from Gaming? Quote Link to comment Share on other sites More sharing options...
Michael Posted August 1, 2022 Share Posted August 1, 2022 17 hours ago, Chief Stipe said: Profit $17m below last year. I guess the codes will be digging into their pockets to fund the RIB shortfall in funding from Gaming? And Operating Expenses up $3.5m on last Year Quote Link to comment Share on other sites More sharing options...
KickintheKods Posted August 1, 2022 Share Posted August 1, 2022 I'll bet you two apple pies with custard and whipped cream, that there was record profits for the year in the Petone bar and cafe. 1 Quote Link to comment Share on other sites More sharing options...
Joe Bloggs Posted August 1, 2022 Share Posted August 1, 2022 How do they fund stakes then? If they are to stay the same or increase where's that money coming from? Accountancy was never a strong point in Petone, if the TAB traded whilst insolvent [bring on a royal commission] what's the chances NZTR are next? Ms Ardern has the keys to the printing press, best keep them in the safe as Sharrock and the gang will be lurking shortly. Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted August 1, 2022 Author Share Posted August 1, 2022 6 minutes ago, Joe Bloggs said: How do they fund stakes then? If they are to stay the same or increase where's that money coming from? Accountancy was never a strong point in Petone, if the TAB traded whilst insolvent [bring on a royal commission] what's the chances NZTR are next? Ms Ardern has the keys to the printing press, best keep them in the safe as Sharrock and the gang will be lurking shortly. It's worse than it looks too @Joe Bloggs. Under McKenzie's regime at TAB NZ a number of functions were devolved to the codes. So if the Stakes increase promises are to be met one or all of the following will have to occur: reduction in total stakes paid; less races (abandonment's help immensely); and/or, those devolved activities will not be funded e.g. code marketing. There must be some concern about RIB funding with Gaming profits taking a hit AND the RIB having increased operating costs. So much for efficiencies in amalgamating the JCA and RIU! Quote Link to comment Share on other sites More sharing options...
Huey Posted August 1, 2022 Share Posted August 1, 2022 13 minutes ago, Chief Stipe said: It's worse than it looks too @Joe Bloggs. Under McKenzie's regime at TAB NZ a number of functions were devolved to the codes. So if the Stakes increase promises are to be met one or all of the following will have to occur: reduction in total stakes paid; less races (abandonment's help immensely); and/or, those devolved activities will not be funded e.g. code marketing. There must be some concern about RIB funding with Gaming profits taking a hit AND the RIB having increased operating costs. So much for efficiencies in amalgamating the JCA and RIU! One wonders what marketing they actually do? Surely can't cost much. Quote Link to comment Share on other sites More sharing options...
Huey Posted August 1, 2022 Share Posted August 1, 2022 25 minutes ago, Joe Bloggs said: How do they fund stakes then? If they are to stay the same or increase where's that money coming from? Accountancy was never a strong point in Petone, if the TAB traded whilst insolvent [bring on a royal commission] what's the chances NZTR are next? Ms Ardern has the keys to the printing press, best keep them in the safe as Sharrock and the gang will be lurking shortly. More likely they'll be lurking around agenda inflicted abandoned racecourses. Quote Link to comment Share on other sites More sharing options...
NZRacing Posted August 1, 2022 Share Posted August 1, 2022 Profit down $17 million on last year so how did the CEO come up with a figure of $200 million in profit? Looking ahead As we evolve to being a digital first business, we need to do a better job of the experience we deliver via our TAB Mobile App. In that light, we've reset the partnership with OpenBet in New York, the provider of our technology platform. We are hitting the accelerator on fast tracking the delivery of products, such as Same Race Multis and Odds Boost. We are also reviewing what the future of the retail experience looks like in our own venues and within our pubs and clubs partnership network. Covid has accelerated the move to more customers using the App and the resulting drop in foot traffic is likely to see further consolidation of the retail experience around New Zealand. We have already closed four of our retail stores in the past two years with the potential of further closures in the next 12 months. That will still leave a retail network of more than 500 sites (retail, pubs and clubs) where punters can get the physical TAB NZ experience. August 1 marks the dawning of a new season for all three racing codes in New Zealand and it also signals the start of TAB NZ's new financial year. We're incredibly proud of what the business has delivered to racing, sport and communities in New Zealand in the past 12 months. We are on track to distribute more than $200 million for the first time in our history. This would not have been possible without your support of TAB NZ. And it's important to note that several million dollars of this also goes to gambling harm minimisation. Quote Link to comment Share on other sites More sharing options...
NZRacing Posted August 2, 2022 Share Posted August 2, 2022 (edited) For June 2021 reported profit was $16 million which is $5 million more than this year. The budgeted figure was $12.7 million, why would you budget such a low comparable figure when you supposably cut costs this season? Comparable figures should always be listed against the previous actual figures not budgets, well that's how the majority of Company's operate their accounts when comparing figures from one year to the next. https://www.tabnz.org/tab-new-zealand-performance-update-june-2021 On track to distribute $200 million, another figure plucked from the sky. Edited August 2, 2022 by NZRacing Quote Link to comment Share on other sites More sharing options...
NZRacing Posted August 2, 2022 Share Posted August 2, 2022 (edited) Quote As we evolve to being a digital first business, we need to do a better job of the experience we deliver via our TAB Mobile App. In that light, we've reset the partnership with OpenBet in New York, the provider of our technology platform. We are hitting the accelerator on fast tracking the delivery of products, such as Same Race Multis and Odds Boos Nobody I know uses the APP they all say its a piece of crap. They should have saved money and binned the thing. Edited August 2, 2022 by NZRacing Quote Link to comment Share on other sites More sharing options...
KickintheKods Posted August 2, 2022 Share Posted August 2, 2022 100% correct. The APP is useless. Compare it to the Ladbrokes one ...chalk and cheese Quote Link to comment Share on other sites More sharing options...
NZRacing Posted August 2, 2022 Share Posted August 2, 2022 Quote June Operational Performance Reported Profit for the month was $11.0m, which was $1.7m below Budget. Operating Expenses were $10.0m for the month, which was $0.2m below Budget. $1.7m below Budget - yes but up $500,000 for the same month last year. Budgeted figures verse actual are a joke. Quote Link to comment Share on other sites More sharing options...
Huey Posted August 2, 2022 Share Posted August 2, 2022 40 minutes ago, NZRacing said: $1.7m below Budget - yes but up $500,000 for the same month last year. Budgeted figures verse actual are a joke. I would not have thought they were a joke if both sides of the equation had to be met to deliver their expected distribution figure? Quote Link to comment Share on other sites More sharing options...
Huey Posted August 2, 2022 Share Posted August 2, 2022 19 hours ago, Chief Stipe said: Profit $17m below last year. I guess the codes will be digging into their pockets to fund the RIB shortfall in funding from Gaming? Will the RIU even matter anymore when they realise they can't afford it? That surely can't be too far away ,given government's propensity to rid the world of harmful addictions? Quote Link to comment Share on other sites More sharing options...
NZRacing Posted August 2, 2022 Share Posted August 2, 2022 (edited) It's fine to have a budgeted figure verse actual but you should still also have the previous years figure included to give a truer indication as to performance. Once upon a time that's how they operated when quoting figures but it's no surprise to see why they don't any longer. Edited August 2, 2022 by NZRacing Quote Link to comment Share on other sites More sharing options...
Doomed Posted August 2, 2022 Share Posted August 2, 2022 2 hours ago, Huey said: One wonders what marketing they actually do? Surely can't cost much. To give them some credit, I have seen quite a bit of promotional activity around Grand National week. Come and enjoy the thrill of jumps racing, that sort of thing. 1 Quote Link to comment Share on other sites More sharing options...
Joe Bloggs Posted August 2, 2022 Share Posted August 2, 2022 Doomed we could all rock up to Jackson St with a set of jumper leads and try to start something? Sound Like a plan? 1 Quote Link to comment Share on other sites More sharing options...
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