TAB NZ Provides the Second Monthly Trading Update for the 2021/2022 Financial Year
NEW ZEALAND (October 26, 2021) — TAB New Zealand (TAB NZ) provides the second monthly trading update for the 2021/2022 financial year, with the results and highlights for September 2021.
The TAB continued to be able to operate successfully through its online and some retail channels during the heightened Alert Levels through September, although as discussed below, there were some revenue-related impacts due to the TAB’s retail and gaming networks in Auckland remaining closed, and physical distancing requirements in other parts of New Zealand. These challenges have continued through to October, as Alert Level 3 restrictions have continued in Auckland and were re-introduced in parts of the Waikato.
Notwithstanding these challenges, the TAB and industry is maintaining a much more robust position financially than during last year’s nationwide lockdown. However, as the Government response to Covid-19 continues to adapt and evolve, TAB NZ will continue to act with caution when assessing future potential trading conditions and how this will flow on to profit distribution.
Despite the impact of ongoing lockdowns in parts of New Zealand on trading in September, the TAB NZ Board has continued to hold distributions at budgeted levels pending further clarification of Alert Level implications over the coming weeks. Although betting performance has been relatively strong through the first half of October, continued closure of Auckland retail and gaming in particular present material challenges for the business and will require continued monitoring and further assessment at the appropriate time.
Wagering Performance Summary
In September, the key performance results for TAB were mixed due to the heightened Alert Levels. While turnover was down, gross betting revenue was slightly up on Budget, supported by a slight percentage increase in Gross Betting Margin (against Budget and September last year). Turnover of $191.9m was $9.4m below Budget and $18.8m below last year. Total Gross Betting Revenue was $33.7m, $1.5m above Budget and at a margin of 17.6% percent.
Average NZ thoroughbred starters per race was 9.8, below the FY21 average of 11.3, while the peak turnover for a domestic meeting was $3.24m on 18 September for the Tarzino Trophy Daffodil Raceday. Harness average starters per race was 9.9, below the FY21 average of 10.8, while the peak meeting turnover of $1.0m was on 10 September at Addington. For greyhound racing, the average starters per race was 7.6, matching the FY21 average, while the peak turnover for a domestic meeting was $387k on 30 September at Addington. The total margin for all New Zealand racing was 19.4 percent, above the FY21 New Zealand racing margin of 18.2 percent. Overseas racing margin was 19.8 percent, slightly above the FY21 average of 19.2 percent.
The top sporting events by turnover this month were the four All Blacks test matches ($3.0m across all four games) and the two NRL preliminary finals ($1.3m across both games). The margin on options selected by customers across sports continued to vary with the in-play sports delivering a gross betting margin of 8.2 percent. Football and tennis were the main drivers of in-play performance, accounting for 39 percent of in-play turnover at 8.9 and 8.8 percent margin respectively. The pre-match singles margin was 14.7 percent, driven by rugby league (19 percent of pre-match turnover) at a margin of just under 24 percent and rugby union (20 percent of sports turnover) at 20 percent. Sports Multi margin was at 28.1 percent.
September Operational Performance
- Reported Profit for the month was $13.8m, which was $1.6m above Budget.
- Operating Expenses were $9.1m for the month, which was $0.8m below Budget.
- Year To Date (1 Aug 2021 to 30 Sep 2021) Reported Profit was $22.5m which was $1.4m below Budget and $5.1m below last year.
- Year To Date ((1 Aug 2021 to 30 Sep 2021) Operating Expenses were $18.2M, which was $1.4m below Budget and $0.1m below last year.
Racing Codes were paid $12.6m in distributions and other payments for September, versus $12.6m 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, and Betting Duty/Levy repeal.
SOURCE: TAB New Zealand (TAB NZ).TAB New Zealand