Tabcorp Holdings Limited · ASX:TAH
Tabcorp — 1H15 Earnings Presentation
22 slides from Tabcorp's earnings presentation, Feb 5, 2015
Slide 1: Half Year Results Presentation ASX cover letter
Tabcorp Holdings Limited ACN 063 780 709 5 Bowen Crescent Melbourne Australia 3004 GPO Box 1943 Melbourne Australia 3001 Telephone 61 3 9868 2100 Facsimile 61 3 9868 2300 For personal use only Website www.tabcorp.com.au 5 February 2015 To: Australian Securities Exchange Market Announcements 20 Bridg
Slide 2: 2014/15 Half Year Results Presentation
For personal use only Tabcorp Holdings Limited ABN 66 063 780 709 2014/15 Half Year Results Presentation 5 February 2015 Draft version 15 (01-08-13)
Slide 3: 1H15 overview
1H15 overview Statutory NPAT $122.4m, up 64.1%, comprising of: For personal use only NPAT before significant items $90.9m, up 21.8% Net benefit from significant items after tax of $31.5m relating to an income tax benefit Statutory EPS 16.0 cents per share, up 61.6% EPS before significant i
Slide 4: Group Results
Group Results For personal use only $m 1H15 1H14 Change Revenues 1,115.2 1,045.1 6.7% Variable contribution 495.9 464.4 6.8% Operating expenses (234.6) (220.6) 6.3% EBITDA 261.3 243.8 7.2% D&A (84.2) (81.8) 2.9% EBIT 177.1 162.0 9.3% Interest (40.2) (51.4) (21.8%) Tax expense (46.0) (36.0) 27.8% NPA
Slide 5: Business results
Business results Wagering Change Gaming Change Keno Change Group Change For personal use only $m & Media on pcp Services on pcp on pcp on pcp Revenues 960.7 7.8% 50.7 1.6% 103.8 (0.6%) 1,115.2 6.7% Variable contribution 388.1 8.7% 49.9 0.0% 57.9 0.5% 495.9 6.8% Operating expenses (195.9) 8.0% (16.1)
Slide 6: Wagering & Media: KPIs
Wagering & Media: KPIs $m 1H15 1H14 Change For personal use only Revenues by product TAB Racing Total revenue growth of 6.9% reflecting - Totalisator 663.3 680.3 (2.5%) Focus on customer engagement - Fixed Odds 214.7 161.1 33.3% Improved risk management Total TAB Racing 878.0 841.4 4.3% Inve
Slide 7: Maintain market leadership in wagering
Maintain market leadership in wagering Strong digital execution For personal use only Digital turnover up 21.7% in 1H15 Mobile 63% of digital turnover (51% in pcp) Continued investment in digital New HTML website launched Improved Live Match Centre Streamlined customer on-boarding proc
Slide 8: Media and International are key enablers of wagering
Media and International are key enablers of wagering Wagering & Media segments integrated, reporting to COO Wagering & Media For personal use only Media content expanded Long-term agreement reached for NSW thoroughbred media rights, including digital rights Negotiations for Victorian thoroug
Slide 9: Gaming Services
Gaming Services For personal use only $m 1H15 1H14 Change Victoria Operating revenue 50.0 47.9 4.4% Approximately 8,600 EGMs Other revenue 0.7 2.0 (65.0%) In-EGM loyalty rolled out to 68% of total EGM base Revenues 50.7 49.9 1.6% NSW EBITDA 33.8 33.7 0.3% EBIT 20.3 20.1 1.0% 120 EGMs under
Slide 10: Keno
Keno For personal use only $m 1H15 1H14 Change Revenue performance impacted by equipment sales and rental in pcp, and Revenues 103.8 104.4 (0.6%) Qld down 0.8%, impacted by gaming EBITDA 36.2 36.1 0.3% regulatory changes EBIT 27.0 25.8 4.7% NSW up 3.5% Venues 3,635 3,638 (0.1%) Vic down 0.9%
Slide 11: Capital expenditure and investments
Capital expenditure and investments Capex trend Major capex projects For personal use only Wagering & Media 72 Digital strategy 69 61 Technology enhancements Self service and retail refurbishments International co-mingling Gaming Services EGMs NSW expansion Keno Product expansion
Slide 12: Key capital features
Key capital features Debt Structure For personal use only $m Bank facilities 500 Tabcorp Subordinated notes 1 400 US Private Placement 300 200 400 400 150 250 100 127 84 0 FY15 FY16 FY17 FY18 FY19 FY20+ ACTTAB acquisition funded from existing bank facilities. Undrawn bank facilities of $270m a
Slide 13: Conclusion
Conclusion 1H15 results driven by strong Wagering & Media performance and continued expense discipline For personal use only EBITDA of $261.3m, up 7.2% Interim dividend 10.0 cents per share, fully franked, up 25.0% 1 Special dividend of 30.0 cents per share, fully franked 1 ACTTAB acquisit
Slide 14: Appendices
Appendices 1. Group results For personal use only 2. Wagering: Financial data 3. Wagering: Revenues by state and product 4. Balance sheet 5. Cashflow 6. Reconciliation of 1H14 and FY14 comparatives 13
Slide 15: 1. Group results
1. Group results $m 1H15 1H14 Change For personal use only Revenues 1,115.2 1,045.1 6.7% Government taxes & levies (191.2) (180.5) 5.9% Operating commissions (134.4) (132.9) 1.1% Racing industry fees (293.7) (267.3) 9.9% Variable contribution 495.9 464.4 6.8% Operating expenses (234.6) (220.6) 6.3%
Slide 16: 2. Wagering: Financial data
2. Wagering: Financial data $m 1H15 1H14 Change For personal use only Revenues 960.7 890.8 7.8% Taxes, levies, commissions and fees (572.6) (533.9) 7.2% Variable Contribution 388.1 356.9 8.7% Operating expenses (195.9) (181.4) 8.0% EBITDA 192.2 175.5 9.5% D&A (61.5) (57.8) 6.4% EBIT 130.7 117.7 11.0
Slide 17: 3. Wagering: Revenues by state and product
3. Wagering: Revenues by state and product For personal use only NSW Change Vic Change ACT Change Change $m 1H15 1H15 on pcp 1H15 on pcp 1H15 on pcp on pcp Racing 465.4 5.0% 215.5 2.2% 6.2 n/a 687.1 5.0% Sports 67.8 38.1% 19.6 18.8% 0.3 n/a 87.7 33.7% Trackside 23.3 15.9% 14.5 7.4% 0.0 n/a 37.8 12.5
Slide 18: 4. Balance Sheet
4. Balance Sheet $m Dec 14 Jun 14 Change For personal use only Total current assets 196.9 181.0 8.8% Licences 704.6 726.6 (3.0%) Other intangible assets 1,940.5 1,833.9 5.8% Property, plant and equipment 315.5 312.6 0.9% Other non current assets 90.9 51.0 78.2% Total assets 3,248.4 3,105.1 4.6% Tota
Slide 19: 5. Cashflow
5. Cashflow For personal use only $m 1H15 1H14 Change Net operating flows 268.8 270.7 (0.7%) Net interest payments (40.6) (52.5) (22.7%) Income tax paid (29.5) (32.8) (10.1%) Payments for PP&E and intangibles (76.7) (136.0) (43.6%) Sub-total 122.0 49.4 >100% Dividends paid (net) (51.3) (29.8) 72.1%
Slide 20: 6. Reconciliation of 1H14 and FY14 comparatives
6. Reconciliation of 1H14 and FY14 comparatives Media & For personal use only 1H14 Wagering International Wagering & $m (as reported) (as reported) Eliminations Media (restated) Revenues 809.2 109.9 (28.3) 890.8 Taxes, levies, commissions and fees (522.8) (14.4) 3.3 (533.9) Variable contribution 286
Slide 21: Disclaimer
Disclaimer This Presentation contains summary information about the current activities of Tabcorp Holdings Limited (Tabcorp) and its subsidiaries For personal use only (Tabcorp Group). It should be read in conjunction with the Tabcorp Group’s other periodic and continuous disclosure announcements lo
Slide 22: For personal use only
For personal use only 21 Draft version 14 (29-07-13)