Tabcorp Holdings Limited · ASX:TAH
Tabcorp — FY2014 Earnings Presentation
23 slides from Tabcorp's earnings presentation, Aug 7, 2014
Slide 1: Tabcorp Holdings Limited 2013/14 Full Year Results Presentation
Tabcorp Holdings Limited ABN 66 063 780 709 2013/14 Full Year Results Presentation 7 August 2014
Slide 2: FY14 overview
FY14 overview Statutory NPAT $129.9m, up 2.6% NPAT from continuing operations before significant items $149.4m, up 7.4% Statutory EPS 17.2 cents per share, in line with pcp EPS from continuing operations before significant items 19.8 cents per share, up 4.8% Full year dividend 16 cents per
Slide 3: Group Results
Group Results $m FY14 FY13 Change Revenues 2,039.8 2,003.2 1.8% Variable contribution 919.5 885.6 3.8% Operating expenses (433.4) (421.7) 2.8% EBITDA from continuing operations before significant items 486.1 463.9 4.8% D&A (164.4) (151.1) 8.8% EBIT from continuing operations before significant items
Slide 4: Business results
Business results Wagering Change Media Change Gaming Change Keno Change Group Change $m on pcp & Int'l on pcp Services on pcp on pcp on pcp Revenues 1,574.7 1.1% 220.4 6.2% 98.1 13.7% 203.9 (0.7%) 2,039.8 1.8% Variable contribution 566.2 3.5% 192.4 4.0% 98.1 13.7% 113.4 (2.5%) 919.5 3.8% Operating e
Slide 5: Wagering: KPIs
Wagering: KPIs Change Change Change $m 1H14 on pcp 2H14 on pcp FY14 on pcp Total revenue growth of 1.8% including the Revenues by product Victorian Racing Industry interest Totalisator Vic 328.3 (3.8%) 271.7 (9.3%) 600.0 (6.4%) Totalisator revenues impacted by customer Totalisator NSW 352.0 (6.3
Slide 6: Customer focus and digital investment
Customer focus and digital investment Increased digital capability and scale Built in-house digital capability Mobile represents 54% of digital turnover (35% in pcp) Enhanced digital offering HTML tablet website released and new tab.com.au website in development Dedicated event site for
Slide 7: Acquisition of ACTTAB
Acquisition of ACTTAB Agreement to acquire ACTTAB for $105.5m, funded from existing bank facilities Completion of acquisition expected in 1H15, subject to regulatory approvals, including ACCC clearance Long-term licences Totalisator (50 years exclusive) Sports Bookmaking including Fixed Od
Slide 8: Media & International
Media & International $m FY14 FY13 Change Revenue growth driven by increased Revenues 220.4 207.6 6.2% international vision and co-mingling Variable contribution 192.4 185.0 4.0% Co-mingling expanded to include Singapore betting into Tabcorp pools Operating expenses (123.9) (118.0) 5.0% EBITDA 6
Slide 9: Gaming Services
Gaming Services $m FY14 FY13 Change Victoria Revenues 98.1 86.3 13.7% Contracts cover approximately 8,500 Operating expenses (31.1) (28.0) 11.1% EGMs EBITDA 67.0 58.3 14.9% In-EGM loyalty approved and roll out EBIT 39.7 37.5 5.9% commenced NSW Expansion commenced 120 EGMs signed FY15 f
Slide 10: Keno
Keno $m FY14 FY13 Change Revenues 203.9 205.4 (0.7%) Revenue continues to be impacted by soft retail trading conditions Operating expenses (41.2) (40.8) 1.0% Qld and NSW flat EBITDA 72.2 75.5 (4.4%) Vic up 3.6% EBIT 51.7 52.2 (1.0%) Keno Racing rolled out into 450 Venues 3,622 3,654 (0.9%) Q
Slide 11: Capital expenditure and investments
Capital expenditure and investments Capex trend Major capex projects Wagering 150 Digital strategy 133 119 124 Technology enhancements Self service and retail refurbishments Gaming Services EGMs In-EGM loyalty NSW expansion Keno Jackpot pooling FY11 FY12 FY13 FY14 Keno Racing (
Slide 12: Key capital features
Key capital features Debt Structure $m Bank facilities 500 1 Tabcorp Subordinated notes 400 US Private Placement 300 200 400 400 150 250 100 127 84 0 FY15 FY16 FY17 FY18 FY19 FY20+ Bond maturities refinanced 1 May 2014 with bank debt, resulting in interest savings of c.$10m p.a. Undrawn bank f
Slide 13: Conclusion
Conclusion Business strongly positioned for future Licence extensions and agreement to acquire ACTTAB strengthen group portfolio New senior executive leadership structure in place Improved balance sheet FY15 target dividend payout to 90% of NPAT FY15 focus Wagering - digital / retail i
Slide 14: Appendices
Appendices 1. Group results 2. Wagering: Financial data 3. Wagering: Revenues by state and product 4. Gaming Services: Financial data 5. Keno: Financial data 6. Balance sheet 7. Cashflow 14
Slide 15: 1. Group results
1. Group results $m FY14 FY13 Change Revenues 2,039.8 2,003.2 1.8% Government taxes & levies (349.5) (359.4) (2.8%) Operating commissions (256.5) (258.1) (0.6%) Racing industry fees (514.3) (500.1) 2.8% Variable contribution 919.5 885.6 3.8% Operating expenses (433.4) (421.7) 2.8% EBITDA from contin
Slide 16: 2. Wagering: Financial data
2. Wagering: Financial data $m FY14 FY13 Change Totalisator - Vic 322.0 352.5 (8.7%) Totalisator - NSW 662.9 706.9 (6.2%) Fixed Odds 407.1 328.2 24.0% Trackside 64.1 64.1 0.0% Luxbet 47.9 39.1 22.5% Other 70.7 67.2 5.2% Revenues 1,574.7 1,558.0 1.1% Taxes, levies, commissions and fees (1,008.5) (1,0
Slide 17: 3. Wagering: Revenues by state and product
3. Wagering: Revenues by state and product NSW Change Vic Change Total Change $m FY14 on pcp FY14 on pcp FY14 on pcp Thoroughbred 432.9 (6.2%) 215.1 (8.2%) 648.0 (6.9%) Harness 81.9 (7.9%) 42.7 (11.4%) 124.6 (9.1%) Greyhound 148.1 (5.2%) 64.2 (8.3%) 212.3 (6.2%) Totalisator 662.9 (6.2%) 322.0 (8.7%)
Slide 18: 4. Gaming Services: Financial data
4. Gaming Services: Financial data $m FY14 FY13 Change Operating revenue 95.1 81.6 16.5% Other revenue 3.0 4.7 (36.2%) Revenues 98.1 86.3 13.7% Operating expenses (31.1) (28.0) 11.1% EBITDA 67.0 58.3 14.9% D&A (27.3) (20.8) 31.3% EBIT 39.7 37.5 5.9% EBIT/Revenue 40.5% 43.5% (3.0%) Notes: - The Gamin
Slide 19: 5. Keno: Financial data
5. Keno: Financial data $m FY14 FY13 Change Operating revenue 165.6 165.3 0.2% Other revenue 38.3 40.1 (4.5%) Revenues 203.9 205.4 (0.7% ) Taxes, levies, commissions and fees (90.5) (89.1) 1.6% Operating expenses (41.2) (40.8) 1.0% EBITDA 72.2 75.5 (4.4% ) D&A (20.5) (23.3) (12.0%) EBIT 51.7 52.2 (1
Slide 20: 6. Balance Sheet
6. Balance Sheet $m Jun 14 Jun 13 Change Total current assets 181.0 221.3 (18.2%) Licences 726.6 750.3 (3.2%) Other intangible assets 1,833.9 1,772.4 3.5% Property, plant and equipment 312.6 308.5 1.3% Other non current assets 51.0 92.1 (44.6%) Total assets 3,105.1 3,144.6 (1.3%) Total liabilities 1
Slide 21: 7. Cashflow
7. Cashflow $m FY14 FY13 Change Net operating flows 541.2 494.1 9.5% Net interest payments (100.1) (101.5) (1.4%) Income tax paid (75.2) (108.4) (30.6%) Payments for PP&E and intangibles (198.4) (204.2) (2.8%) Sub-total 167.5 80.0 >100% Dividends paid (net) (60.0) (116.1) (48.3%) Health Benefit Levy
Slide 22: Disclaimer
Disclaimer This Presentation contains summary information about the current activities of Tabcorp Holdings Limited (Tabcorp) and its subsidiaries (Tabcorp Group). It should be read in conjunction with the Tabcorp Group’s other periodic and continuous disclosure announcements lodged with the Australi
Slide 23: Draft version 14 (29-07-
23 Draft version 14 (29-07-