Monthly Trading Performance Update
TAB New Zealand (TAB NZ) today provides a trading update for August, the first month of the 2020/21 financial year. Moving forward, TAB NZ will provide regular updates on wagering performance and key operational highlights.
Wagering Performance Summary
Despite the ongoing impact of COVID-19 on its business and the wider industry, TAB NZ’s key results for the month were ahead of budget and last year.
Starter and field size numbers were particularly good for both equine codes contributing to positive year-on-year domestic racing turnover growth. Encouragingly, total racing turnover continues to be strong, with year-on-year growth (+10.1%) with no significant growth in the volume of racing being broadcast. Analysis of customer behaviour shows that many bet on domestic racing only prior to lockdown have maintained their overseas racing activity while their domestic racing activity has returned back to prior levels.
Sports turnover was strong (+36%), benefiting from the condensed nature of the sports calendar at the moment, with a number of sports seasons overlapping where they traditionally would not, eg. NBA taking place in August. This is helping to drive customer engagement levels.
Customer numbers responded positively with 94,000 customers for the month, with days active comparable to the peak November period (Melbourne Cup and NZ Cup Week and major World Cups in the past).
Retail operations and customers have also been shown to be resilient, notwithstanding the recent Greater Auckland Level 3 lockdown. Retail turnover in Auckland returned, almost immediately, to pre-lockdown levels. The Board recognises the significance of a Level 3 or 4 lockdown on our gaming business is considerable given the absence of being able to provide a comparable online offering. This presents risk to the funding of racing integrity, racing enhancement and community sport which Class 4 Gaming currently enables. Extra vigilance of gaming performance is therefore required to manage the ongoing risk of COVID-19.
The Board is encouraged by the trading performance for the month however it remains cautious at this early stage of the season on the ability to meet full year projections. This is given the ongoing uncertainty presented by COVID-19 and the potential for further disruption to domestic and international product supply.
August Operational Performance Highlights
- Net Profit for the month was $12.8m, which was $1.7m above Budget and $1.4m above Last Year. This is made up of; Betting Profit $11.9m (+$2.2m v Budget), Gaming Profit of $1.4m (-$0.5m vs Budget) and Racing Integrity RIU (RIU) of -$0.5m (in-line vs Budget). The result was primarily driven by a strong trading month from turnover due to increased product supply with margin and continued cost management being in-line with Budget.
- Total Gaming Revenue is $0.6m below Budget and $0.7m (-26.3%) below Last Year due to Auckland sites being closed for 19 days during Covid-19 lockdown. All other stores overall were in line with Budget.
- Operating Expenses are $0.2m below Budget and $2.6m (+21.1%) below Last Year.
August Distributions
- Actual distributions of $11.5m for August were paid to the Racing Codes vs $10.7m budgeted. This consists of TAB NZ Betting Profit, Betting Duty relief and offshore bookmaker commission fees (Betting Information User Charge (BIUC) in the table below), based on actual turnover.
August Wagering Performance Highlights
- Account bettor customers were slightly up (+1,200) on July’s numbers, with both racing and sport bettor numbers increasing: Racing customers were up 4% in July and sport customers were in line with July.
- Turnover of $208.2m is $21.8m above Budget and $27.1m (+14.9%) above Last Year impacted by strong performance in International Racing and Sport.
- Domestic racing accounted for $54m in turnover, with overseas racing product made up $82.2m of the month’s total turnover and sport delivering $71.7m in turnover.
- Gross Betting Revenue of $32.1m is $3.1m above Budget and $1.6m above last year due to higher turnover.
August Events
Top 10 Racing Events by turnover
22-Aug |
Randwick |
R7 |
Winx Stakes (G1) |
$434K |
15-Aug |
Riccarton |
R8 |
Winning Edge Presentations 123rd Winter Cup (G3) |
$425K |
15-Aug |
Riccarton |
R10 |
Racecourse Hotel & Motor Lodge Handicap |
$388K |
8-Aug |
Te Rapa |
R10 |
See You @ Valachi Downs Foxbridge Plate Day 1400 |
$324K |
1-Aug |
Matamata |
R7 |
Well Done Jamie Richards & Team 100 Winners |
$323K |
22-Aug |
Matamata |
R11 |
Happy 60th Russell Wright Handicap 2000 |
$287K |
1-Aug |
Ashburton |
R9 |
Brand & Gunn Want The Return of Trackside Radio |
$285K |
22-Aug |
Matamata |
R9 |
Cunningham Decorating Services Handicap 1200 |
$281K |
1-Aug |
Matamata |
R5 |
Price Racing 1400 |
$268K |
1-Aug |
Ashburton |
R10 |
Barnswood Farm Stakes Day 18th October |
$259K |
Top 10 sport events by turnover
9-Aug |
Super Rugby |
Crusaders v Highlanders |
$645K |
1-Aug |
Super Rugby |
Chiefs v Crusaders |
$608K |
7-Aug |
NRL |
Manly Sea Eagles v NZ Warriors |
$599K |
14-Aug |
NRL |
NZ Warriors v Penrith Panthers |
$575K |
20-Aug |
NRL |
Parramatta Eels v Melbourne Storm |
$552K |
30-Aug |
NRL |
Canberra Raiders v Canterbury Bulldogs |
$542K |
27-Aug |
NRL |
Parramatta Eels v South Sydney Rabbitohs |
$519K |
8-Aug |
Super Rugby |
Hurricanes v Chiefs |
$519K |
13-Aug |
NRL |
Sydney Roosters v Melbourne Storm |
$518K |
29-Aug |
NRL |
NZ Warriors v Newcastle Knights |
$518K |