Reboot Delivering Record Results

Reboot Delivering Record Results

The New Zealand Racing Board has announced record results for betting turnover and net profit in 2012/13, resulting in a record distribution to the country’s racing industry.

The three Racing Codes – New Zealand Thoroughbred Racing, Harness Racing New Zealand and Greyhound Racing New Zealand – and the racing industry, received $142.0 million from the NZ Racing Board’s operations, an increase of $6.5 million on 2011/12. In addition, $5.7 million was paid or provided for distribution to National Sporting Organisations and other bodies as a result of sports betting and gaming activities.

The final distribution came as a result of record turnover of $1.957 billion in the year to July 31, 2013, with a 13.2% increase in net profit to $144.1 million.

NZ Racing Board Chair Glenda Hughes said the results were excellent, particularly given challenging conditions during the year.

“The business has exceeded expectations, having revised net profit targets higher in December 2012 to $142.5 million.

“What’s most pleasing, however, is that we’ve achieved these results despite increasing offshore competition, a lack of major sporting events in 2012/13 to offset the positive impact of Rugby World Cup in the prior year and 12 race meeting abandonments due to extreme weather conditions.

“We’ve also seen ongoing pressure on domestic tote performance, in particular, driven by increasing customer preference toward fixed odds betting on racing and sport.”

NZ Racing Board Chief Executive Chris Bayliss said the year’s results showed the business had established the momentum required to deliver increasing and sustainable returns to the industry.

“While making sure we were working toward reaching our year-end targets we also undertook a major review and restructuring of the business in 2012/13 to set the foundations for change and growth.

“With the support of the Board, we examined every aspect of the business to allow for clear decision-making regarding future investment, direction and vision for the business and the industry. By necessity, 2012/13 was a transitional year for the NZ Racing Board as we set about ‘rebooting’ the business to ensure it was best-placed structurally and strategically to deliver increased returns to stakeholders.

“So to achieve that, as well as delivering record results, is something we’re all very proud of.”

2012/13 2011/12 % change
Turnover $1.957b $1.814b +7.9%
Net profit $144.1m $127.3m +13.2%
Distribution to Racing Industry $142.0m $135.5m +4.8%
Total distribution made from current year profit $142.4m $135.8m +4.9%

Note: All figures comprise TAB betting and Class 4 gaming

The audited financial statements have been completed. The NZ Racing Board’s annual report, including the financial statements, will be available at the Annual General Meeting on November 28, 2013.

ENDS

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