Tabcorp Holdings Limited · ASX:TAH
Tabcorp — Shareholder Meeting (2003)
31 slides from Tabcorp's shareholder meeting presentation, 2003
Slide 1: TABCORP Holdings Limited 2003 Annual General Meeting
TABCORP Holdings Limited 2003 Annual General Meeting
Slide 2: Key features
Key features • Increased profits and EPS before non-recurring items, despite impact of smoking bans • Final dividend of 34 cents taking full year dividend to 67 cents per share fully franked – 63 cents LY • Continued underlying growth in wagering profitability • Strong second half performance by Sta
Slide 3: TABCORP – Group profile
TABCORP – Group profile Net Net profit profit after after tax* tax* Earnings Earnings per per share* share* CAGR 16.4% 100.0 CAGR 12.9% 300.0 259.3 263.1 74.3 76.4 250.0 80.0 200.0 170.3 187.7 60.0 55.3 52.5 $ millions 143.3 47.1 cps 150.0 40.0 69.5 71.5 100.0 50.4 20.0 47.1 48.8 50.0 0.0 0.0 1999 2
Slide 4: Gaming
Gaming Revenue Revenue PBITA PBITA margin* margin* CAGR 4.4% 1000 918 27.0% 846 848 795 26.0% 800 713 25.0% $ millions 600 24.0% 23.0% 400 22.0% 200 21.0% 0 20.0% 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 PBITA* PBITA* Capital Capital expenditure expenditure CAGR 4.2% 90 79 250 231 208 80 20
Slide 5: Gaming – Monthly revenue
Gaming – Monthly revenue TABCORP monthly revenue $’000 95,000 Impact of smoking ban 90,000 85,000 80,000 75,000 70,000 65,000 60,000 55,000 50,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2001 2002 2003 AGM 2003
Slide 6: Wagering
Wagering Revenue Revenue PBITA PBITA margin* margin* CAGR 4.5% 440 421 16.0% 420 404 15.0% 400 380 14.0% $ millions 380 363 353 13.0% 360 340 12.0% 320 11.0% 300 10.0% 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 PBITA* PBITA* Capital Capital expenditure expenditure CAGR 9.7% 25 23 70 64 58 19
Slide 7: Star City
Star City Revenue* Revenue* PBITA PBITA margin* margin* CAGR 3.8% 31.0% 700 631 29.0% 586 612 600 27.0% 500 438 25.0% $ millions 400 23.0% 300 21.0% 200 19.0% 100 17.0% 0 15.0% 2000 2001 2002 2003 2000 2001 2002 2003 PBITA* PBITA* Capital Capital expenditure* expenditure* CAGR 27.3% 18 200 182 15 16
Slide 8: Star City – Main gaming floor highlights
Star City – Main gaming floor highlights Quarter Quarter 11 Quarter Quarter 22 Quarter Quarter 33 Quarter Quarter 44 •• New New roulette roulette pit pit (6 (6 •• Revise Revise black black jack jack // •• 00 00 roulette roulette on on $2 $2 •• Rapid Rapid Roulette Roulette tables) tables) pontoon mi
Slide 9: Star City – Rapid Roulette
Star City – Rapid Roulette Rapid Rapid Roulette Roulette • Interactive – electronic betting • Popular with customers • Low denomination AGM 2003
Slide 10: Key business strategies
Key business strategies Organic Organic Growth Growth Inorganic Inorganic Growth Growth •• Drive Drive growth growth in in existing existing businesses businesses •• Implement Implement merger/acquisition merger/acquisition through through focus focus on: on: opportunities opportunities that: that:
Slide 11: Focus for FY2004 – Key organic growth strategies
Focus for FY2004 – Key organic growth strategies • Wagering – Continued growth in customer usage of lower cost distribution channels and enhancing revenue through working with the racing industry, introducing new products and improving outlet amenity AGM 2003
Slide 12: Wagering – Distribution
Wagering – Distribution Distribution Distribution Breakdown Breakdown of of account account sales sales % of account sale transactions 100% 90% 2,750 80% 70% 2,500 60% 50% 2,250 40% 30% 2,000 20% TABCORP turnover ($'m) 10% 1,750 0% 2000 2001 2002 2003 1,500 Operator Touchtone Voice Internet Probet 1
Slide 13: Focus for FY2004 – Key organic growth strategies
Focus for FY2004 – Key organic growth strategies • Wagering – Continued growth in customer usage of lower cost distribution channels and enhancing revenue through working with the racing industry, introducing new products and improving outlet amenity • Gaming – Improving venue amenity and customer s
Slide 14: Gaming – Venue amenity
Gaming – Venue amenity Venues Venues with with Grade Grade 44 smoking smoking area area Critical Critical Success Success Factors Factors • Amenity of smokers 180 70.0% lounge 160 60.0% 140 • Effective machine 120 50.0% reservation system 100 40.0% • Well trained staff 80 30.0% 60 20.0% 40 20 10.0%
Slide 15: Focus for FY2004 – Key organic growth strategies
Focus for FY2004 – Key organic growth strategies • Wagering – Continued growth in customer usage of lower cost distribution channels and enhancing revenue through working with the racing industry, introducing new products and improving outlet amenity • Gaming – Improving venue amenity and customer s
Slide 16: Star City – Private slots lounge
Star City – Private slots lounge Offer Offer to to VIP VIP customers customers •• Access Access available available only only to to rated rated VIP VIP players players and and potential potential VIP VIP players players •• 158 158 slot slot machines machines –– mix mix determined determined byby pla
Slide 17: Jupiters – Gold Coast
Jupiters – Gold Coast AGM 2003
Slide 18: Casino floor – Gold Coast
Casino floor – Gold Coast AGM 2003
Slide 19: Treasury Casino – Brisbane
Treasury Casino – Brisbane AGM 2003
Slide 20: Main gaming floor – Brisbane
Main gaming floor – Brisbane AGM 2003
Slide 21: Jupiters Casino – Townsville
Jupiters Casino – Townsville AGM 2003
Slide 22: Customer service
Customer service AGM 2003
Slide 23: Jupiters KENO
Jupiters KENO AGM 2003
Slide 24: Jupiters – Group profile
Jupiters – Group profile Operations Operations Fundamentals Fundamentals •• Casinos Casinos (as at 27 October 2003) -- Gold Gold Coast Coast casino casino with with 1,348 1,348 gaming gaming Share price A$ 6.49 machines, machines, 103103 tables, tables, 603 603 rooms rooms Shares on issue m 201.8 --
Slide 25: Jupiters merger
Jupiters merger • Jupiters shareholders approved the merger on 24 October 2003 • Implementation date scheduled for 13 November 2003 • Discussions with Park Place regarding the management contracts continue • Integration planning is well advanced with a team from TABCORP and Jupiters • Integration to
Slide 26: TABCORP/Jupiters – Group profile
TABCORP/Jupiters – Group profile Key Key Business Business Statistics Statistics Casinos Other businesses No of casinos: 4 Keno outlets: c2,000 Wagering outlets: 566 Casino customers per day: 36,800 EGM monitoring(QLD): c14,000 Casino gaming machines: c4,400 TAB account customers: 120,000 Casino gam
Slide 27: Key company issues in 2004
Key company issues in 2004 Responsible Gambling • First independent review of compliance with the TABCORP Responsible Gambling Code conducted by KPMG • Preliminary findings are encouraging • Appointment of dedicated Responsible Gambling Manager 2012 • Victorian wagering and gaming licences to 2012 •
Slide 28: First Quarter Performance
First Quarter Performance Net Revenue (3.3)% $491m $475m Wagering 98 104 5.2% Gaming 240 211 (12.1)% Casinos 153 160 5.1% 2003 2004 AGM 2003
Slide 29: Gaming revenue – 2004 YTD
Gaming revenue – 2004 YTD % change (PCP) 10.0% 4.7% 5.0% 0.2% 0.0% July August September 11–25 - 25 October October -5.0% -10.0% -15.0% -14.4% -20.0% -19.4% -25.0% AGM 2003
Slide 30: Conclusion
Conclusion • FY2003 was a challenging year, however we managed to achieve 1.5% growth in NPAT pre non- recurring items • Each of our businesses holds a strong position in its respective market and is well positioned for continued growth in profitability • Company remains ready to engage in discussio
Slide 31: Australia's premier gambling and entertainment group
Australia’s premier gambling and entertainment group AGM 2003