Tabcorp Holdings Limited · ASX:TAH

Tabcorp — H1 2012 Earnings Presentation

21 slides from Tabcorp's earnings presentation, Feb 9, 2012

  1. Slide 1: Tabcorp Holdings Limited 2011/12 Half Year Results Presentation

    Tabcorp Holdings Limited 2011/12 Half Year Results Presentation 9 February 2012

  2. Slide 2: 1H12 financial results

    1H12 financial results ¾ NPAT from continuing operations $189.3m, up 14.1% ƒ This reflects strong underlying earnings growth and lower interest expense following demerger ƒ Prior period NPAT of $265.5m included $99.6m from discontinued operations ¾ EBIT from continuing operations $316.9m, up 5.6% ƒ

  3. Slide 3: 1H12 financial results – continuing operations

    1H12 financial results – continuing operations ¾ EBIT $316.9m, up 5.6% ƒ Revenues $1,573.5m up 2.8% ƒ Variable contribution $588.9m up 5.7% ƒ Operating expenses $205.8m up 4.6% ƒ EBITDA $383.1m up 6.4% ¾ Business performance (EBIT) ƒ Wagering $132.8m up 6.2% ƒ Media & International $28.7m up 7.1% ƒ

  4. Slide 4: Business results

    Business results Wagering Change Media Change Victorian Change Keno Change Group1 Change $m on pcp & Int'l on pcp Gaming on pcp on pcp on pcp Revenues 849.4 2.8% 94.5 5.7% 562.0 1.0% 92.4 10.3% 1,573.5 2.8% Variable contribution 306.8 6.5% 89.0 5.7% 166.6 2.3% 51.7 11.4% 588.9 5.7% Operating expense

  5. Slide 5: Wagering: KPIs

    Wagering: KPIs $m 1H12 1H11 Change Revenues by product ¾ Strong growth in Fixed Odds revenue of 39.5% Totalisator Vic 325.1 344.1 (5.5%) ƒ Allowing for Soccer World Cup in prior period, growth was 50% Totalisator NSW 384.3 413.9 (7.2%) ƒ Growth largely offsetting declines in totalisator revenues Fix

  6. Slide 6: Wagering highlights

    Wagering highlights ¾ Victorian Wagering and Betting Licence ƒ Agreements signed with Victorian Government & Victorian Racing Industry ƒ Licence issued 19th December 2011 ¾ Victorian venue expansion using kiosk technology commenced ¾ Online and mobile ƒ Streaming vision on iPads/iPhones well receive

  7. Slide 7: Media & International

    Media & International $m 1H12 1H11 Change ¾ Revenue growth due to increased Revenues 94.5 89.4 5.7% subscriptions Operating expenses (56.5) (54.1) 4.4% ¾ Expenses driven primarily by new broadcast arrangements in Queensland EBITDA 32.5 30.0 8.3% ¾ Media rights extended for South EBIT 28.7 26.8 7.1%

  8. Slide 8: Victorian Gaming: KPIs

    Victorian Gaming: KPIs $m 1H12 1H11 Change Vic EGMs Revenues 562.0 556.2 1.0% ¾ Managing transition for end of licence in Operating expenses (18.2) (19.5) (6.7%) August 2012, including reduction in EBITDA 148.4 143.4 3.5% operating expenses EBIT 129.1 124.7 3.5% Tabcorp Gaming Solutions Venues (peri

  9. Slide 9: Keno: KPIs

    Keno: KPIs $m 1H12 1H11 Change ¾ Strong performance Revenues 92.4 83.8 10.3% ƒ Qld revenues up 11.4% Operating expenses (18.8) (17.2) 9.3% ƒ NSW revenues up 9.3% EBITDA 32.9 29.2 12.7% ¾ Expenses driven by EBIT 26.3 23.7 11.0% ƒ New Victorian Keno licence Venues (Qld, NSW) 2,781 2,680 3.8% establish

  10. Slide 10: Capital expenditure and investments

    Capital expenditure and investments Capex trend Major investments ¾ Major capex projects 67 63 ƒ New Victorian Keno roll out 52 ƒ TGS loyalty system and EGMs ƒ New internet wagering platform ƒ Venue expansion ƒ Trackside NSW ƒ Outside broadcast vans 1H11 2H11 1H12 ¾ Major investments $m ƒ Victorian

  11. Slide 11: Key capital features

    Key capital features 1,000 800 450 600 $m 400 284 400 400 200 150 0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Medium term notes Tabcorp Bonds 1 year debt facility Bank facility ¾ Refinancing of FY13 maturities is targeted for 2H12. This may include hybrid securities. ¾ Gross Debt/EBITDA 1.4x, pre Victorian

  12. Slide 12: Summary

    Summary ¾ Growth continues ƒ EBIT $316.9m, up 5.6% ƒ Revenue and earnings growth across all four businesses ƒ Operating expenses well controlled ¾ Investment plans in place ƒ Wagering - Victorian Wagering and Betting Licence issued - Trackside rollout ahead of schedule, over 1,800 completed ƒ Media

  13. Slide 13: Appendices

    Appendices 1. Group results 2. Wagering: Financial data 3. Wagering: Revenues by state and product 4. Victorian Gaming: Financial data 5. Keno: Financial data 6. Balance sheet 7. Cashflow 13

  14. Slide 14: 1. Group results

    1. Group results Change $m 1H12 1H11 on pcp Revenues 1,573.5 1,530.7 2.8% Government taxes & levies (464.0) (464.7) (0.2%) Operating commissions (280.2) (269.0) 4.2% Racing industry fees (240.4) (240.1) 0.1% Variable contribution 588.9 556.9 5.7% Operating expenses (205.8) (196.7) 4.6% EBITDA 383.1

  15. Slide 15: 2. Wagering: Financial data

    2. Wagering: Financial data $m 1H12 1H11 Change Totalisator - Vic 247.0 261.6 (5.6%) Totalisator - NSW 384.3 413.9 (7.2%) Fixed Odds 136.8 97.5 40.3% Trackside 35.5 16.0 121.9% Luxbet 12.3 9.6 28.1% Other 33.5 27.3 22.7% Revenues 849.4 825.9 2.8% Taxes, levies, commissions and fees (542.6) (537.7) 0

  16. Slide 16: 3. Wagering: Revenue by state and product

    3. Wagering: Revenue by state and product NSW Change Vic Change Total Change $m 1H12 on pcp 1H12 on pcp 1H12 on pcp Operating revenues Thoroughbred 254.5 (8.0%) 165.6 (5.3%) 420.1 (7.0%) Harness 46.3 (11.1%) 32.8 (11.1%) 79.1 (11.1%) Greyhound 83.5 (1.9%) 48.6 (2.4%) 132.1 (2.1%) Totalisator 384.3 (

  17. Slide 17: 4. Victorian Gaming: Financial data

    4. Victorian Gaming: Financial data $m 1H12 1H11 Change Victorian network - Hotel 368.0 366.4 0.4% Victorian network - Clubs 190.7 188.2 1.3% Total Victorian gaming 558.7 554.6 0.7% Other revenue 3.3 1.6 106.3% Revenues 562.0 556.2 1.0% Taxes, levies, commissions and fees (395.4) (393.3) 0.5% Operat

  18. Slide 18: 5. Keno: Financial data

    5. Keno: Financial data $m 1H12 1H11 Change Keno 77.8 70.1 11.0% Other revenue 14.6 13.7 6.6% Revenues 92.4 83.8 10.3% Taxes, levies, commissions and fees (40.7) (37.4) 8.8% Operating expenses (18.8) (17.2) 9.3% EBITDA 32.9 29.2 12.7% D&A (6.6) (5.5) 20.0% EBIT 26.3 23.7 11.0% EBIT/Revenue 28.5% 28.

  19. Slide 19: 6. Balance Sheet

    6. Balance Sheet As at As at Change $m 31 Dec 11 30 Jun 11 on pcp Total current assets 293.6 250.9 17.0% Licences 832.1 430.2 93.4% Other intangible assets 1,800.9 1,805.7 (0.3%) Property, plant and equipment 292.2 280.5 4.2% Other non current assets 67.8 71.2 (4.8%) Total assets 3,286.6 2,838.5 15.

  20. Slide 20: 7. Cashflow

    7. Cashflow $m 1H12 Net operating flows 385.9 Net interest payments (43.0) Income tax paid (94.8) Payments for PP&E and licences (142.6) Net operating cash flows 105.5 Dividends paid (65.2) Payment of restructuring costs for demerger (21.0) Others (3.2) Net debt at beginning of period 817.9 Non cash

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