Tabcorp Holdings Limited · ASX:TAH
Tabcorp — H1 FY2013 Earnings Presentation
25 slides from Tabcorp's earnings presentation, Feb 7, 2013
Slide 1: ASX cover announcement: Half Year Results Presentation
Tabcorp Holdings Limited ACN 063 780 709 5 Bowen Crescent Melbourne Australia 3004 GPO Box 1943R Melbourne Australia 3001 Telephone 61 3 9868 2100 Facsimile 61 3 9868 2300 For personal use only Website www.tabcorp.com.au 7 February 2013 To: Australian Securities Exchange Market Announcements 20 Brid
Slide 2: 2012/13 Half Year Results Presentation
For personal use only Tabcorp Holdings Limited ABN 66 063 780 709 2012/13 Half Year Results Presentation 7 February 2013
Slide 3: 1H overview
1H overview Statutory NPAT of $72.9m For personal use only NPAT from continuing operations before significant items of $71.6m EPS from continuing operations before significant items of 9.8 cents per share Interim dividend of 11 cents per share, fully franked Includes earnings from disconti
Slide 4: Definitions and major adjustments
Definitions and major adjustments 1H results reflect significant changes to the business portfolio For personal use only Changeover to the new 50/50 Victorian Wagering JV on 16 August, previously 75/25 Victorian Tabaret business ceased 15 August Gaming Services (TGS) business commenced on 16
Slide 5: Group Results
Group Results Change $m 1H13 1H12 on pcp For personal use only Revenues 1,034.9 1,013.8 2.1% Variable contribution 450.0 424.7 6.0% Operating expenses (218.7) (199.3) 9.7% EBITDA from continuing operations before significant items 231.3 225.4 2.6% D&A (70.9) (47.6) 48.9% EBIT from continuing operati
Slide 6: Business results – continuing operations
Business results – continuing operations 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 816.1 (4.0%) 101.5 8.1% 37.8 >100% 106.5 15.3% 1,034.9 2.1% Variable contribution 285.8 (7.0%) 92.0 4.1%
Slide 7: Wagering: KPIs
Wagering: KPIs $m 1H13 1H12 Change Revenues by product Total revenue growth of 6.2% including Victorian Racing Industry interest For personal use only Totalisator Vic 341.2 325.1 5.0% Totalisator NSW 375.7 384.3 (2.2%) Totalisator revenues benefited from the cessation of ToteTas pooling Fixed Od
Slide 8: Wagering: commentary
Wagering: commentary 1H investments include For personal use only Brands launched, new website and digital Increased bookmaking capability and expanded markets Customer acquisition during Spring Racing Carnival Multi channel strategy Digital investments driving revenue and market share g
Slide 9: Media & International
Media & International $m 1H13 1H12 Change Revenue growth from For personal use only Revenues 101.5 93.9 8.1% Increased subscriptions Operating expenses (59.8) (57.1) 4.7% International growth – co-mingling & vision EBITDA 32.2 31.3 2.9% Expenses increase due to EBIT 27.5 27.4 0.4% Broadcast
Slide 10: Gaming Services
Gaming Services $m 1H13 1H12 Change Commenced operations 16 August 2012 For personal use only Revenues 37.8 2.2 >100% Operating expenses (12.4) (3.8) >100% Sign ups covering over 8,500 EGM’s EBITDA 25.4 (1.6) >100% 75% 10 year contracts EBIT 16.8 (1.6) >100% 25% minimum 6 year contracts Venu
Slide 11: Keno
Keno $m 1H13 1H12 Change Revenue performance For personal use only Revenues 106.5 92.4 15.3% Contribution from new Victorian Operating expenses (22.3) (19.7) 13.2% business EBITDA 36.7 32.0 14.7% Qld revenues up 6.2% EBIT 25.6 25.3 1.2% NSW revenues up 2.3% Venues 3,573 2,918 22.4% Expense
Slide 12: Capital expenditure and investments
Capital expenditure and investments Capex trend Major FY13 capex projects For personal use only 86.8 Gaming Services 68.4 TGS EGMs 62.8 Wagering Retail Digital strategy and technology New brands Victorian Wagering and Betting systems 1H12 2H12 1H13 Keno expansion Wagering Media & Int
Slide 13: Key capital features
Key capital features Debt maturity profile For personal use only $m 500 400 300 284 200 400 400 250 100 211 150 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19+ Bank facilities Medium Term notes (May 2014) Tabcorp Retail bonds (May 2014) Tabcorp Subordinated notes 1 US Private Placement Gross Debt/EBITDA2
Slide 14: Summary
Summary 1H performance For personal use only Strong revenue growth across all business lines Invested in growth markets and products (Fixed Odds, PGI, TGS and Keno) Managed significant change (decommissioned Victorian Tabaret, launched TGS and transitioned to the new Victorian Wagering and B
Slide 15: Appendices
Appendices 1. Group results For personal use only 2. Wagering: Financial data 3. Wagering: Revenues by state and product 4. Gaming Services: Financial data 5. Keno: Financial data 6. Discontinued – Victorian Tabaret: Financial data 7. Balance sheet 8. Cashflow 14
Slide 16: 1. Group results
1. Group results Change $m 1H13 1H12 on pcp For personal use only Revenues 1,034.9 1,013.8 2.1% Government taxes & levies (195.7) (225.4) (13.2%) Operating commissions (131.7) (124.4) 5.9% Racing industry fees (257.5) (239.3) 7.6% Variable contribution 450.0 424.7 6.0% Operating expenses (218.7) (19
Slide 17: 2. Wagering: Financial data
2. Wagering: Financial data For personal use only $m 1H13 1H12 Change Totalisator - Vic 191.2 247.0 (22.6%) Totalisator - NSW 375.7 384.3 (2.2%) Fixed Odds 160.2 136.8 17.1% Trackside 33.7 35.5 (5.1%) Luxbet 19.6 12.3 59.3% Other 35.7 34.2 4.4% Revenues 816.1 850.1 (4.0%) Taxes, levies, commissions
Slide 18: 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 1H13 on pcp 1H13 on pcp 1H13 on pcp Thoroughbred 247.9 (2.6%) 128.5 (22.4%) 376.4 (10.4%) Harness 44.8 (3.2%) 24.7 (24.7%) 69.5 (12.1%) Greyhound 83.0 (0.6%) 38.0 (21.8%) 121.0 (8.4%) Totalisator 3
Slide 19: 4. Gaming Services: Financial data
4. Gaming Services: Financial data For personal use only $m 1H13 1H12 Change Operating revenue 35.3 0.0 >100% Other revenue 2.5 2.2 13.6% Revenues 37.8 2.2 >100% Operating expenses (12.4) (3.8) >100% EBITDA 25.4 (1.6) >100% D&A (8.6) (0.0) 100% EBIT 16.8 (1.6) >100% EBIT/Revenue 44.4% (72.7%) >100%
Slide 20: 5. Keno: Financial data
5. Keno: Financial data For personal use only $m 1H13 1H12 Change Operating revenue 89.5 77.8 15.0% Other revenue 17.0 14.6 16.4% Revenues 106.5 92.4 15.3% Taxes, levies, commissions and fees (47.5) (40.7) 16.7% Operating expenses (22.3) (19.7) 13.2% EBITDA 36.7 32.0 14.7% D&A (11.1) (6.7) 65.7% EBI
Slide 21: 6. Discontinued – Victorian Tabaret: Financial data
6. Discontinued – Victorian Tabaret: Financial data $m 1H13 1H12 Change For personal use only Operating revenue 130.1 559.2 (76.7%) Other revenue 0.1 0.5 (80.0%) Revenues 130.2 559.7 (76.7%) Taxes, levies, commissions and fees (92.9) (395.4) (76.5%) Operating expenses (6.8) (6.6) 3.0% Other income 1
Slide 22: 7. Balance Sheet
7. Balance Sheet As at As at Change For personal use only $m 31 Dec 12 30 Jun 12 on pcp Total current assets 209.3 228.2 (8.3%) Licences 792.3 814.8 (2.8%) Other intangible assets 1,762.6 1,803.2 (2.3%) Property, plant and equipment 316.7 313.3 1.1% Other non current assets 78.8 89.5 (12.0%) Total a
Slide 23: 8. Cashflow
8. Cashflow Change For personal use only $m 1H13 1H12 on pcp Net operating flows 274.9 385.9 (28.8%) Net interest payments (51.0) (43.0) 18.6% Income tax paid (71.5) (94.8) (24.6%) Payments for PP&E and licences (157.6) (142.6) 10.5% Sub-total (5.2) 105.5 (>100%) Dividends paid (68.8) (65.2) 5.5% Pa
Slide 24: 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 25: For personal use only
For personal use only 24