Tabcorp Holdings Limited · ASX:TAH
Tabcorp — H1 2014 Earnings Presentation
24 slides from Tabcorp's earnings presentation, Feb 6, 2014
Slide 1: Tabcorp 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 6 February 2014 To: Australian Securities Exchange Market Announcements 20 Bridg
Slide 2: 2013/14 Half Year Results Presentation
For personal use only Tabcorp Holdings Limited ABN 66 063 780 709 2013/14 Half Year Results Presentation 6 February 2014 Draft version 15 (01-08-13)
Slide 3: 1H14 overview
1H14 overview For personal use only Statutory NPAT of $74.6m, up 2.3% NPAT from continuing operations before significant items up 4.2% EPS of 9.9 cents per share Interim dividend 8 cents per share, fully franked Group EBITDA of $243.8m, up 5.4% Bank facilities extended and increased in p
Slide 4: Group Results
Group Results For personal use only $m 1H14 1H13 Change Revenues 1,045.1 1,034.9 1.0% Variable contribution 464.4 450.0 3.2% Operating expenses (220.6) (218.7) 0.9% EBITDA from continuing operations before significant items 243.8 231.3 5.4% D&A (81.8) (70.9) 15.4% EBIT from continuing operations bef
Slide 5: Business results
Business results For personal use only 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 809.2 (0.7%) 109.9 8.3% 49.9 32.0% 104.4 (2.0%) 1,045.1 1.0% Variable contribution 286.4 0.2% 95.5 3.8% 49.9 32.0% 57.6 (2.4%) 46
Slide 6: Wagering: KPIs
Wagering: KPIs $m 1H14 1H13 Change For personal use only Revenues by product Total revenue growth of 1.3% including the Victorian Racing Totalisator Vic 328.3 341.2 (3.8%) Industry interest Totalisator NSW 352.0 375.7 (6.3%) Fixed Odds 243.2 195.6 24.3% Totalisator revenues impacted by customer
Slide 7: Customer centricity and digital leadership
Customer centricity and digital leadership For personal use only Customer engagement Strong growth in customer engagement through our expanded ‘TAB Rewards’ loyalty program and increased investment in CRM Digital Increased digital capability Continued integration of digital and retail chan
Slide 8: Media & International
Media & International For personal use only $m 1H14 1H13 Change Revenue growth predominantly from Revenues 109.9 101.5 8.3% International – vision expansion and co-mingling Variable contribution 95.5 92.0 3.8% Australian racing broadcast in 52 Operating expenses (60.6) (59.8) 1.3% countries EBIT
Slide 9: Gaming Services
Gaming Services For personal use only $m 1H14 1H13 Change TGS commenced operations 16 August 2012 Revenues 49.9 37.8 32.0% Contracts cover approximately 8,500 EGMs Operating expenses (16.2) (12.4) 30.6% in Victoria EBITDA 33.7 25.4 32.7% 75% 10 year contracts EBIT 20.1 16.8 19.6% 25% minimum
Slide 10: Keno
Keno For personal use only $m 1H14 1H13 Change Revenue performance Revenues 104.4 106.5 (2.0%) Qld revenues down 4.2% impacted by Operating expenses (21.5) (22.3) (3.6%) a higher number of jackpots vs pcp EBITDA 36.1 36.7 (1.6%) NSW up 0.5% EBIT 25.8 25.6 0.8% Victoria up 3.9% Venues 3,638 3
Slide 11: Capital expenditure and investments
Capital expenditure and investments Capex trend Major FY14 capex projects For personal use only Wagering 68 Digital strategy 61 Existing technology and system enhancement 56 Self service and retail refurbishments TGS Purchase of EGMs Loyalty system in Victoria Keno Keno Racing in Q
Slide 12: Key capital features
Key capital features Debt Structure For personal use only $m Bank facilities 500 Tabcorp Subordinated notes 1 Tabcorp Retail bonds (May 2014) Medium Term notes (May 2014) 400 US Private Placement 300 285 200 400 400 150 250 100 150 127 84 0 FY14 FY15 FY16 FY17 FY18 FY19 FY20+ Bank facilities inc
Slide 13: Conclusion
Conclusion For personal use only 1H14 summary EBITDA of $243.8m, up 5.4% Interim dividend 8 cents per share, fully franked Debt facilities extended to cover May 2014 maturities Licence extensions completed 2H14 focus Digital growth, fixed odds expansion, RNSW ‘The Championships’ and So
Slide 14: Appendices
Appendices For personal use only 1. Group results 2. Wagering: Financial data 3. Wagering: Revenues by state and product 4. Wagering: Pro-forma 5. Gaming Services: Financial data 6. Keno: Financial data 7. Balance sheet 8. Cashflow 13
Slide 15: 1. Group results
1. Group results For personal use only $m 1H14 1H13 Change Revenues 1,045.1 1,034.9 1.0% Government taxes & levies (180.5) (195.7) (7.8%) Operating commissions (132.9) (131.7) 0.9% Racing industry fees (267.3) (257.5) 3.8% Variable contribution 464.4 450.0 3.2% Operating expenses (220.6) (218.7) 0.9
Slide 16: 2. Wagering: Financial data
2. Wagering: Financial data For personal use only $m 1H14 1H13 Change Totalisator - Vic 175.9 191.2 (8.0%) Totalisator - NSW 352.0 375.7 (6.3%) Fixed Odds 191.8 160.2 19.7% Trackside 33.6 33.7 (0.3%) Luxbet 19.9 19.6 1.5% Other 36.0 34.7 3.7% Revenues 809.2 815.1 (0.7% ) Taxes, levies, commissions a
Slide 17: 3. Wagering: Revenues by state and product
3. Wagering: Revenues by state and product For personal use only NSW Change Vic Change Total Change $m 1H14 on pcp 1H14 on pcp 1H14 on pcp Thoroughbred 232.0 (6.4%) 119.3 (7.2%) 351.3 (6.7%) Harness 41.7 (6.9%) 21.9 (11.3%) 63.6 (8.5%) Greyhound 78.3 (5.7%) 34.7 (8.7%) 113.0 (6.6%) Totalisator 352.0
Slide 18: 4. Wagering: Pro-forma
4. Wagering: Pro-forma For personal use only New Vic 1H14 1H13 1H13 $m Wagering Race fields2 Change Reported Reported Pro-forma Licence1 Revenue 809.2 815.1 (22.9) 792.2 2.1% Taxes, commissions and fees (522.8) (529.3) 13.6 (2.2) (517.9) 0.9% VC 286.4 285.8 (9.3) (2.2) 274.3 4.4% Operating expenses
Slide 19: 5. Gaming Services: Financial data
5. Gaming Services: Financial data For personal use only $m 1H14 1H13 Change Operating revenue 47.9 35.3 35.7% Other revenue 2.0 2.5 (20.0%) Revenues 49.9 37.8 32.0% Operating expenses (16.2) (12.4) 30.6% EBITDA 33.7 25.4 (32.7% ) D&A (13.6) (8.6) 58.1% EBIT 20.1 16.8 19.6% EBIT/Revenue 40.3% 44.4%
Slide 20: 6. Keno: Financial data
6. Keno: Financial data For personal use only $m 1H14 1H13 Change Operating revenue 86.7 89.5 (3.1%) Other revenue 17.7 17.0 4.1% Revenues 104.4 106.5 (2.0% ) Taxes, levies, commissions and fees (46.8) (47.5) (1.5%) Operating expenses (21.5) (22.3) (3.6%) EBITDA 36.1 36.7 (1.6% ) D&A (10.3) (11.1) (
Slide 21: 7. Balance Sheet
7. Balance Sheet As at As at Change For personal use only $m 31 Dec 13 30 Jun 13 Total current assets 201.4 221.3 (9.0%) Licences 748.4 750.3 (0.3%) Other intangible assets 1,827.0 1,772.4 3.1% Property, plant and equipment 306.4 308.5 (0.7%) Other non current assets 74.4 92.1 (19.2%) Total assets 3
Slide 22: 8. Cashflow
8. Cashflow For personal use only $m 1H14 1H13 Change Net operating flows 270.7 274.9 (1.5%) Net interest payments (52.5) (51.0) 2.9% Income tax paid (32.8) (71.5) (54.1%) Payments for PP&E and licences (136.0) (157.6) (13.7%) Sub-total 49.4 (5.2) >100% Dividends paid (35.2) (68.8) (48.8%) Payment o
Slide 23: Disclaimer
Disclaimer For personal use only 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 lo
Slide 24: For personal use only
For personal use only 23 Draft version 14 (29-07-13)