Chief Stipe Posted August 30, 2022 Share Posted August 30, 2022 TAB NZ Trading Performance Update - July 2022 www.tabnz.org TAB New Zealand (TAB NZ) provides the twelfth and final monthly trading update for the 2021/2022 financial year, with the results and highlights for July 2022. The TAB continued to operate through its online and retail channels throughout July. 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 down against budget in July, as was gross betting revenue (GBR), although the gross betting margin was up on expectations. A combination of factors contributed to the result. These included softening economic conditions continuing to have an impact on discretionary spend for New Zealanders in line with the rising cost of living, ongoing mask restrictions in retail venues continue to deter a section of customers from visiting, race meetings being abandoned due to weather and a drop in starter numbers in two of the three racing codes in July; continuing on from a trend that began in April. Operating expenses were up on budget in July due to restructuring costs, and investments in customer retention and acquisition. The TAB NZ Board has been able to maintain betting profit distributions at budgeted levels throughout the entire financial year. 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, the ongoing impact of masks in retail venues, the current domestic and global financial climate, and the potential impact of any further ongoing trend of a drop in starter numbers as it assesses future distributions. Wagering Performance Summary In July, the key performance results for TAB NZ were slightly down on the overall positive trends of the 2021/22 financial year. Turnover of $203.5m was 5.7% ($12.3m) below budget. Gross betting revenue (GBR) of $32.6m was down on budget by 4.8% ($1.6m). The gross betting margin (GBM) of 16.0% was 0.2 percentage points above budget. Racing Average NZ thoroughbred starters per race in July was 10.2, slightly below the FY22 average of 10.6, while the peak turnover for a domestic meeting was $2.6m on 30 July for the Taumarunui Raceday at Te Rapa. The average starters per harness race in July was 10.3, slightly above the FY22 average of 10.2, while the peak meeting turnover of $1.1m was on 22 July at Addington. For greyhound racing, the average starters per race in July was 7.5, slightly below the YTD average of 7.6, while the peak turnover for a domestic meeting was $493k on 14 July at Addington. Sport The top 3 sporting events by turnover for July were the three All Blacks tests against Ireland with a combined turnover of $5.0m. Basketball was the leading in-play sporting code accounting for 20% of in-play turnover while Rugby League was the top pre-match singles sporting code accounting for 34% of pre-match turnover. July Operational Performance Reported Profit for the month was $8.7m, which was $5.2m below Budget. Operating Expenses were $11.9m for the month, which was $1.7m above Budget. Full Year (1 Aug 2021 to 31 July 2022) Reported Profit was $154.8m, which was $8.5m below Budget and $23.5m below last year. Full Year (1 Aug 2021 to 31 July 2022) Operating Expenses were $119.0m, which was $1.7m below Budget and $5.4m above last year. July Distributions Racing Codes were paid $14.6m in distributions and other payments for July, versus $14.3m 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 23-Jul New Plymouth R5 Powerworx Opunake Cup $562K 30-Jul Te Rapa R8 Taumarunui RSA Gold Cup $398K 2-Jul Ruakaka R8 Northbeam Strong Stuff $396K 30-Jul Te Rapa R11 Woods Contracting 1400 $367K 30-Jul Te Rapa R9 NZ Farmers Livestock 1200 $346K 23-Jul New Plymouth R8 Seaton Park 1600 $344K 16-Jul Ruakaka R8 ITM/GIB Progressive Winter Champs Series Final $335K 23-Jul New Plymouth R3 UBP Ltd 1800 $335K 30-Jul Te Rapa R10 Bob & Colleen Donaldson Memorial 1400 $334K 30-Jul Te Rapa R6 Courtesy Ford Ryder Stakes $322K Top 10 Sporting events by turnover Date Code Event Turnover 16-Jul Rugby Union New Zealand v Ireland $1.9M 9-Jul Rugby Union New Zealand v Ireland $1.6M 2-Jul Rugby Union New Zealand v Ireland $1.5M 13-Jul Rugby League Queensland v New South Wales $950K 3-Jul Rugby League New Zealand Warriors v Wests Tigers $596K 29-Jul Rugby League New Zealand Warriors v Melbourne Storm $584K 12-Jul Rugby Union Maori All Blacks v Ireland $536K 28-Jul Rugby League Manly Sea Eagles v Sydney Roosters $487K 23-Jul Rugby League Canberra Raiders v New Zealand Warriors $469K 7-Jul Rugby League Cronulla Sharks v Melbourne Storm $444K Q Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted August 30, 2022 Author Share Posted August 30, 2022 3 minutes ago, Chief Stipe said: July Operational Performance Reported Profit for the month was $8.7m, which was $5.2m below Budget. Operating Expenses were $11.9m for the month, which was $1.7m above Budget. Full Year (1 Aug 2021 to 31 July 2022) Reported Profit was $154.8m, which was $8.5m below Budget and $23.5m below last year. Full Year (1 Aug 2021 to 31 July 2022) Operating Expenses were $119.0m, which was $1.7m below Budget and $5.4m above last year. I hope this isn't a trend. July Profit down 37% on what was a weak budget. Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted August 30, 2022 Author Share Posted August 30, 2022 Note the $7.2m down on budget for gaming for the year. The sole source of funding for the RIB. The RIB (RIU) shortfall of about the same amount or more has to come from the codes distribution. We await NZTR's financials!!! Quote Link to comment Share on other sites More sharing options...
Mark D Posted August 30, 2022 Share Posted August 30, 2022 No surprise here and nor are the "reasons/excuses" for the poor performance. Just poor management - you reap what you sow. 2 1 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted August 30, 2022 Author Share Posted August 30, 2022 6 minutes ago, Mark D said: No surprise here and nor are the "reasons/excuses" for the poor performance. Just poor management - you reap what you sow. I'm sure @JJ Flash views this result with positividdy. Quote Link to comment Share on other sites More sharing options...
Joe Bloggs Posted August 30, 2022 Share Posted August 30, 2022 What other business would get away with this? Anywhere?.........it's not a business it's a charity, .....for those that need it most!....the over salaried, underachieving, non-caring cohort that run our industry, well run it into the ground that is......WAFJ. 2 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted August 31, 2022 Author Share Posted August 31, 2022 I'm surprised more people haven't commented on this financial result. The TAB doesn't have any reserves left nor do the codes. I would have thought given the fact they were essentially insolvent before the Government bailout that they're not in a position to borrow to fund budget shortfalls. Certainly neither NZTR nor the RIB have the capacity to borrow. Unless NZTR puts up the promise of a racecourse confiscation as collateral. Quote Link to comment Share on other sites More sharing options...
Joe Bloggs Posted August 31, 2022 Share Posted August 31, 2022 1 hour ago, Chief Stipe said: I'm surprised more people haven't commented on this financial result. The TAB doesn't have any reserves left nor do the codes. I would have thought given the fact they were essentially insolvent before the Government bailout that they're not in a position to borrow to fund budget shortfalls. Certainly neither NZTR nor the RIB have the capacity to borrow. Unless NZTR puts up the promise of a racecourse confiscation as collateral. They may well have done that....in private of course, That MO was always on the cards, you trade whilst insolvent you lose your cred, they lost theirs many moons ago, we need a forensic investigation of that charade, should that happen we'll be faced by a house of cards. Quote Link to comment Share on other sites More sharing options...
curious Posted August 31, 2022 Share Posted August 31, 2022 One of the striking (and worrying) things here is that BIUC distributions have gone from 18.5m to 22.7m, a staggering increase of nearly 23% year on year in what NZ based punters are spending with overseas providers. That makes it little surprise that punter spend with NZTAB is down dramatically and the above has occurred in the very same conditions that they are using to excuse their performance. 1 Quote Link to comment Share on other sites More sharing options...
curious Posted August 31, 2022 Share Posted August 31, 2022 Correction. The above should read: a staggering increase of nearly 23% year on year in what punters are spending with overseas providers on NZ racing. Quote Link to comment Share on other sites More sharing options...
Turny Posted August 31, 2022 Share Posted August 31, 2022 6 minutes ago, curious said: Correction. The above should read: a staggering increase of nearly 23% year on year in what punters are spending with overseas providers on NZ racing. 8 hours ago, Joe Bloggs said: What other business would get away with this? Anywhere?.........it's not a business it's a charity, .....for those that need it most!....the over salaried, underachieving, non-caring cohort that run our industry, well run it into the ground that is......WAFJ. It is a very bad read ... the costs to the new betting platform are really kicking in ... simply poor management, historical, that needs to be sorted out. Frankly, the business is simply insolvent, again... terrible news 1 1 Quote Link to comment Share on other sites More sharing options...
Huey Posted August 31, 2022 Share Posted August 31, 2022 6 hours ago, Chief Stipe said: I'm surprised more people haven't commented on this financial result. The TAB doesn't have any reserves left nor do the codes. I would have thought given the fact they were essentially insolvent before the Government bailout that they're not in a position to borrow to fund budget shortfalls. Certainly neither NZTR nor the RIB have the capacity to borrow. Unless NZTR puts up the promise of a racecourse confiscation as collateral. I think we need to put this in context , Ellerslie stakes are going to be a minimum $20k...so get excited, I know I am! See the other site for further positive rhetoric. 1 Quote Link to comment Share on other sites More sharing options...
Turny Posted August 31, 2022 Share Posted August 31, 2022 (edited) 12 minutes ago, Huey said: I think we need to put this in context , Ellerslie stakes are going to be a minimum $20k...so get excited, I know I am! See the other site for further positive rhetoric. Mid week in Aussie 40k, I am happy had 2 wins over last 3 months bills paid for 12 months, but not a Saturday horse running for 140k Edited August 31, 2022 by Turny Quote Link to comment Share on other sites More sharing options...
Huey Posted August 31, 2022 Share Posted August 31, 2022 14 hours ago, Turny said: Mid week in Aussie 40k, I am happy had 2 wins over last 3 months bills paid for 12 months, but not a Saturday horse running for 140k Don't be a negative Nelly , everything is fine in little ol NZ , we've just got to be positive and everything will be great just great (we'll great for a select few, if you're not one of them then you're just being negative)! 1 1 Quote Link to comment Share on other sites More sharing options...
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