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Tabcorp net profit up 22% - Racing Talk - Racehorse TALK

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Offline westie

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O.P. « 2008-Feb-22, 01:36 PM »
Tabcorp has reported a net profit after tax of $273.4 million, up 22 per cent on the previous period. 


Measured in normalised Earnings Before Interest and Tax (EBIT) the results we

Casinos: EBIT $190.0 million, up 0.4 per cent. The three Queensland casinos recovered from last year’s smoking bans with Electronic Gaming Machine (EGM) revenue up 7.3 per cent and main gaming floor revenue up 6.9 per cent. At Star City, EGM revenue declined 9.7 per cent as a result of smoking bans. In the premium business, the casinos grew domestic Private Gaming Room revenue by 7.9 per cent, assisted by higher win rates. The International Rebate Business recorded lower turnover, driven by the absence of a small number of large players during the half.

During the first half, Tabcorp announced that it had reached in-principle agreement with the New South Wales Government to extend Star City’s exclusivity rights for a further 12 years and provide a number of product concessions. Tabcorp confirmed that the agreement would support a substantial investment in the redevelopment and expansion of Star City. The plans for the redevelopment will be finalised in the coming months.

Wagering: EBIT $130.8 million, down 8.9 per cent. Wagering performed well considering the impact of Equine Influenza, which reduced divisional turnover by $327 million and EBIT by $16 million compared to the previous period. The division significantly improved its operational and customer service performance, especially during the Spring Racing Carnival period. Sportsbetting continues to perform well, with turnover up 16 per cent for the period.

Gaming: EBIT $138.7 million, up 1.6 per cent. The division recorded a strong performance following the transition to a 100 per cent smoke-free indoor environment in Victoria and an increase in the EGM levy by $6.7 million for the half year. Operating revenue increased by 6.3 per cent and market share in Victoria improved by 0.6 per cent to 51.5 per cent.

Must be a lot of punters out there that loose, me included.
« Last Edit: 2008-Feb-22, 01:39 PM by westie »

Offline PoisonPen7

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« 2009-Aug-06, 11:07 PM Reply #1 »
Full year results announced today

NPAT $496 million - up 1.2%

Casino revenue up 2.6%
Wagering up 7.8%
Gaming up 6.2%

2010/11 "wagering priorities" include
- Maintain leadership position
- Expand fixed odds offering
- Prepare for national market  :stop:
- Victorian license process

Wagering operating revenues broken down by state.

NSW total $795.5 million (up 7.2%)
- Thoroughbred $546.9 million (up 8.4%)
- Harness $104.7 million (up 14.7%) - ?? Menangle
- Greyhounds $143.9 million (down 1.9%)

Vic total $497.7 million (up 4.4%)
- Thoroughbred $338.3 million (up 6.1%)
- Harness $74.4 million (up 7.9%)
- Greyhounds $85.0 million (down 4.3%)

Noted that the Dishlickers aren't doing too well, and NSW not the "basket case" that some make out it is gauging by the growth figures.




Offline PoisonPen7

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« 2009-Aug-06, 11:18 PM Reply #2 »
They were just interviewing Elmer on Sky Business Channel. Very serious fella, isn't he. I wish he would be serious about his atrocious bloody TAB web sites.  :rant:

Offline bgm1409

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« 2009-Aug-07, 04:10 AM Reply #3 »
Full year results announced today

NPAT $496 million - up 1.2%

Casino revenue up 2.6%
Wagering up 7.8%
Gaming up 6.2%

2010/11 "wagering priorities" include
- Maintain leadership position
- Expand fixed odds offering
- Prepare for national market  :stop:
- Victorian license process

Wagering operating revenues broken down by state.

NSW total $795.5 million (up 7.2%)
- Thoroughbred $546.9 million (up 8.4%)
- Harness $104.7 million (up 14.7%) - ?? Menangle
- Greyhounds $143.9 million (down 1.9%)

Vic total $497.7 million (up 4.4%)
- Thoroughbred $338.3 million (up 6.1%)
- Harness $74.4 million (up 7.9%)
- Greyhounds $85.0 million (down 4.3%)

Noted that the Dishlickers aren't doing too well, and NSW not the "basket case" that some make out it is gauging by the growth figures.




So why is there a 'funding crisis'--figures seem to be back close to pre EI levels

Offline Bamboo Harvester

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« 2009-Aug-07, 06:47 AM Reply #4 »
So why is there a 'funding crisis'--figures seem to be back close to pre EI levels

Tabcrop's Wagering EBITDA was down 7%.  The cost side is hurting them (a first for TAH!) and would have a bit to do with responding to competition. 

** while overall turnover increased around 3%, Vic revenue fell 0.3% and NSW revenue rose only 0.4%, both resulting from Tabcrop lowering pricing on tote betting (power plays etc).
** Overall wagering costs were up 5%, much of this is related to the start up costs of Luxbet.  Analysts estimate that Luxbet's start up costs have come in at 200% of budget.
** The higher race field fees costs add up as well (was $20m, will rise to $30m next year)

The wagering margins are highly vulnerable to cost increases.  The increased competition that comes from corporates bookies (who now advertise) will be fought by Tabcorp and will be expensive.  This includes increased costs to fight for market share (advertising), competition for the licenses and competition to stop Betfair. 

Imagine this year's Spring Carnival - the advertising and the 'free offers' will be everywhere!

Some interesting market share numbers:

TAB Off Course (01-08):  68%, 65, 57, 55, 55, 52, 50.
Tote On course (01-08): steady between 5% - 6%
TAB Phone & Net (01-08): 11%, 11, 14, 14, 15, 15, 15, 16.
Bookmakers Oncourse (01-08): 9%, 13, 10, 9, 8, 7, 6, 5 (!!).
Bookmakers phone and net (01-08): 5%, 6, 13, 16, 17, 17, 21, 23.

Offline Sunliner

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« 2009-Aug-07, 09:10 AM Reply #5 »
PoisonPen, greyhounds reduced the number of meetings from 710 to 604 until they get paid for excess product.

It is the growth in costs which is causing the 'funding crisis' especially as a lot of money is going to have to be spent protecting greyhound turnover as GRNSW seeks to transfer turnover from the NSWTAB to the Corps/ interstate TABs to take advantage of the better deal they offer. You see as it is gallops/trots which profit from the excess greyhound market share, it is they who will have to bear the cost of protecting this excess.

Racefields has delivered greyhounds a 'head's we win, tail's we win as well' scenario.


Offline PoisonPen7

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« 2009-Aug-08, 08:37 AM Reply #6 »
Tabcrop's Wagering EBITDA was down 7%.  The cost side is hurting them (a first for TAH!) and would have a bit to do with responding to competition. 

** while overall turnover increased around 3%, Vic revenue fell 0.3% and NSW revenue rose only 0.4%, both resulting from Tabcrop lowering pricing on tote betting (power plays etc).
** Overall wagering costs were up 5%, much of this is related to the start up costs of Luxbet.  Analysts estimate that Luxbet's start up costs have come in at 200% of budget.
** The higher race field fees costs add up as well (was $20m, will rise to $30m next year)

The wagering margins are highly vulnerable to cost increases.  The increased competition that comes from corporates bookies (who now advertise) will be fought by Tabcorp and will be expensive.  This includes increased costs to fight for market share (advertising), competition for the licenses and competition to stop Betfair. 

Imagine this year's Spring Carnival - the advertising and the 'free offers' will be everywhere!

Some interesting market share numbers:

TAB Off Course (01-08):  68%, 65, 57, 55, 55, 52, 50.
Tote On course (01-08): steady between 5% - 6%
TAB Phone & Net (01-08): 11%, 11, 14, 14, 15, 15, 15, 16.
Bookmakers Oncourse (01-08): 9%, 13, 10, 9, 8, 7, 6, 5 (!!).
Bookmakers phone and net (01-08): 5%, 6, 13, 16, 17, 17, 21, 23.


Just re-checked the Annual report BH, and the revenue figures you quote are for the 2nd half - the increases I quoted were for the full year (page 8 Annual Report).

Point being made, is that if you believe the uninformed stuff you read in the media, you would think that the TAB revenues/turnovers were falling off a cliff. They are clearly not. TABCorp do have an increasing cost base, but that is their problem. The NSW and Vic TAB "product" is not shrinking just yet, and reflects strong continuing interest in racing.

Now, if only you got rid of the middle man...............


Offline PoisonPen7

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« 2009-Aug-08, 08:41 AM Reply #7 »
PoisonPen, greyhounds reduced the number of meetings from 710 to 604 until they get paid for excess product.

It is the growth in costs which is causing the 'funding crisis' especially as a lot of money is going to have to be spent protecting greyhound turnover as GRNSW seeks to transfer turnover from the NSWTAB to the Corps/ interstate TABs to take advantage of the better deal they offer. You see as it is gallops/trots which profit from the excess greyhound market share, it is they who will have to bear the cost of protecting this excess.

Racefields has delivered greyhounds a 'head's we win, tail's we win as well' scenario.



I don't understand that Sunliner. Are you saying that the Greyhounds are "on strike" because they haven't been paid something ("excess product") that they are entitled to?

I don't follow it that closely, but thought someone said in another thread that the Greyhounds signed a deal a few years ago that is hurting them now....or something like that.

Offline Bamboo Harvester

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« 2009-Aug-08, 09:39 AM Reply #8 »
Just re-checked the Annual report BH, and the revenue figures you quote are for the 2nd half - the increases I quoted were for the full year (page 8 Annual Report).


Ah ha.  Yeah, I was just looking at the results from this week's report.
« Last Edit: 2009-Aug-08, 09:42 AM by Bamboo Harvester »

Offline Sunliner

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« 2009-Aug-08, 11:27 AM Reply #9 »
Thats about it PoisonPen. The Cameron Report covers the issues and it affects all 3 codes, the current distribution agreement is stopping any code from growing beyond the limits of the agreement.

At present gallops is being subsidised by greyhounds to the tune of around $6m per year, and those extra meetings were withdrawn after gallops/trots refused to even meet the prizemoney cost of staging them, even though they were the one's earning the income generated by them.

This has left greyhounds with two options, stagnate or seek growth through other means. Racefields has delivered that 'other means' , but it allows greyhounds to grow through deals with the Corps, as Racefields delivers profits earned straight to greyhound racing, whilst any loss from transfer of TAB turnover is borne by gallops/trots.

Long term the danger for gallops is that greyhounds and then trots establish a racing circut with the help of the Corps, outside the current TAB agreement. The deal the greyhounds have is that bad that it is in its long term interest to abandon all but its contracted obligations(as they've done) to the TAB circut, as the damage will be borne by the other codes, whilst they embrace and strengthen the product delivered to the Corps.

For the Corps greyhounds are the thin end of the wedge that will break the TAB monopoly.
For gallops the reason they appear to be stuck doing nothing and wanting nothing to change is because the TAB deal for them is a set of 'golden handcuff's', a set they cant afford to break.

Offline Gintara

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« 2009-Aug-08, 01:35 PM Reply #10 »
Thats about it PoisonPen. The Cameron Report covers the issues and it affects all 3 codes, the current distribution agreement is stopping any code from growing beyond the limits of the agreement.

At present gallops is being subsidised by greyhounds to the tune of around $6m per year, and those extra meetings were withdrawn after gallops/trots refused to even meet the prizemoney cost of staging them, even though they were the one's earning the income generated by them.

This has left greyhounds with two options, stagnate or seek growth through other means. Racefields has delivered that 'other means' , but it allows greyhounds to grow through deals with the Corps, as Racefields delivers profits earned straight to greyhound racing, whilst any loss from transfer of TAB turnover is borne by gallops/trots.

Long term the danger for gallops is that greyhounds and then trots establish a racing circut with the help of the Corps, outside the current TAB agreement. The deal the greyhounds have is that bad that it is in its long term interest to abandon all but its contracted obligations(as they've done) to the TAB circut, as the damage will be borne by the other codes, whilst they embrace and strengthen the product delivered to the Corps.

For the Corps greyhounds are the thin end of the wedge that will break the TAB monopoly.
For gallops the reason they appear to be stuck doing nothing and wanting nothing to change is because the TAB deal for them is a set of 'golden handcuff's', a set they cant afford to break.

PP - Sunliner is right on the money with regards to the dogs  ;)

Offline InTheKnow

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« 2009-Sep-28, 01:13 PM Reply #11 »
Tabcorp will become the Victoria Racing Club’s exclusive wagering partner in a new deal announced Monday.

The signing of the wagering partnership comes on top of the recent announcement that, in a first for a race club in Australia, the VRC will take over the management of one of Melbourne’s major TAB agencies, at Southern Cross Station, in Melbourne’s CBD.

Tabcorp’s Managing Director of Wagering, Robert Nason said: “Tabcorp is pleased the Victoria Racing Club have asked us to be their wagering partner and we are pleased to be collaborating with one of the world’s premier race clubs.”

As part of the multi-faceted wagering partnership:

■ Tabcorp will have VRC and Melbourne Cup Carnival official wagering partner status for both raceday and non-raceday events

■ Tabcorp will have multiple naming rights sponsorships, including a race on Emirates Melbourne Cup day

■ Tabcorp will have a significant marquee presence in the birdcage and trackside enclosure during the 2009 Melbourne Cup carnival

■ There will be extensive signage and advertising opportunities provided to Tabcorp, as well as corporate hospitality.



Offline dubbledee

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« 2009-Sep-28, 01:17 PM Reply #12 »
That's great news.

I'm quite comfortable now with the practice of rounding down to 10c. :rant:


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