Tabcorp Holdings Limited · ASX:TAH
Tabcorp — FY2013 Earnings Presentation
25 slides from Tabcorp's earnings presentation, Aug 9, 2013
Slide 1: Tabcorp Holdings Limited 2012/13 Full Year Results Presentation
Tabcorp Holdings Limited ABN 66 063 780 709 2012/13 Full Year Results Presentation 9 August 2013 Draft version 15 (01-08-13)
Slide 2: FY13 overview
FY13 overview Statutory NPAT of $126.6m NPAT from continuing operations before significant items of $139.1m EPS from continuing operations before significant items of 18.9 cents per share Full year dividend 19 cents per share, fully franked Strong revenue growth across the business Total
Slide 3: Definitions and major adjustments
Definitions and major adjustments FY13 results reflect significant changes to the business portfolio Changeover to the new 50/50 Victorian Wagering JV on 16 August 2012, previously 75/25 Victorian Tabaret business ceased 15 August 2012 Gaming Services (TGS) business commenced on 16 August 20
Slide 4: Group Results
Group Results Change $m FY13 FY12 on pcp Revenues 2,003.2 1,964.3 2.0% Variable contribution 885.6 828.0 7.0% Operating expenses (421.7) (404.5) 4.3% EBITDA from continuing operations before significant items 463.9 423.5 9.5% D&A (151.1) (96.5) 56.6% EBIT from continuing operations before significan
Slide 5: Business results – continuing operations
Business results – continuing operations 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 1,558.0 (4.8%) 207.6 9.1% 86.3 >100% 205.4 12.2% 2,003.2 2.0% Variable contribution 547.2 (7.8%) 185.0 3.3% 86.3 >100% 116.3 14
Slide 6: Wagering: KPIs
Wagering: KPIs Change Change Change $m 1H13 2H13 FY13 on pcp on pcp on pcp Revenues by product Totalisator Vic 341.2 5.0% 299.5 4.7% 640.7 4.8% Total revenue growth of 5.9% including Totalisator NSW 375.7 (2.2%) 331.2 (1.3%) 706.9 (1.8%) Victorian Racing Industry interest Fixed Odds 195.6 28.4% 20
Slide 7: Wagering business positioned for the future
Wagering business positioned for the future Removed current uncertainties in the retail environment In-principle agreement to extend NSW Wagering retail exclusivity to 2033 “Betbox” case in NSW discontinued after success in the Victorian Betbox case Continued drive for digital leadership and
Slide 8: Media & International
Media & International Change $m FY13 FY12 on pcp Revenue growth from: Revenues 207.6 190.2 9.1% International – vision expansion and Variable contribution 185.0 179.1 3.3% co-mingling Operating expenses (118.0) (115.3) 2.3% Increased subscriptions EBITDA 67.0 63.8 5.0% Australian racing now
Slide 9: Gaming Services
Gaming Services Change $m FY13 FY12 on pcp TGS commenced operations 16 August 2012 Revenues 86.3 4.7 >100% Contracts cover approximately 8,500 EGMs in Victoria Operating expenses (28.0) (7.6) >100% 75% 10 year contracts EBITDA 58.3 (2.9) >100% EBIT 37.5 (3.2) >100% 25% minimum 6 year contrac
Slide 10: Keno
Keno Change $m FY13 FY12 on pcp Revenue growth in tough economic Revenues 205.4 183.1 12.2% conditions Operating expenses (40.8) (40.6) 0.5% Contribution from new Victorian EBITDA 75.5 61.4 23.0% business EBIT before impairment 52.2 46.1 13.2% Qld revenues up 2.8% Venues 3,654 3,457 5.7% NSW
Slide 11: Capital expenditure and investments
Capital expenditure and investments Capex trend Major capex projects FY13 capex projects 150 TGS EGMs 139 124 Wagering 119 Retail refurbishments, terminal replacement Expanded and enhanced products Digital strategy and technology New brands Keno expansion - self service terminals, new
Slide 12: Key capital features
Key capital features Debt maturity profile $m 500 400 300 284 200 400 400 250 100 211 150 0 FY14 FY15 FY16 FY17 FY18 FY19+ Bank facilities Medium Term notes (May 2014) Tabcorp Retail bonds (May 2014) Tabcorp Subordinated notes1 US Private Placement Gross Debt/EBITDA2 at 2.6x Undrawn bank facil
Slide 13: Conclusion
Conclusion FY13 summary Business strongly positioned for the future Licence extensions - in-principle agreement for NSW retail wagering exclusivity to 2033 and Keno Qld to be extended to 2047 EBITDA growth from continuing operations up 9.5% Full year dividend of 19 cents per share, fully fra
Slide 14: Appendices
Appendices 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. Discontinued – Victorian Tabaret: Financial data 8. Balance sheet 9. Cashflow 14
Slide 15: 1. Group results
1. Group results Change $m FY13 FY12 on pcp Revenues 2,003.2 1,964.3 2.0% Government taxes & levies (359.4) (432.8) (17.0%) Operating commissions (258.1) (245.4) 5.2% Racing industry fees (500.1) (458.1) 9.2% Variable contribution 885.6 828.0 7.0% Operating expenses (421.7) (404.5) 4.3% EBITDA from
Slide 16: 2. Wagering: Financial data
2. Wagering: Financial data Change $m FY13 FY12 on pcp Totalisator - Vic 352.5 464.3 (24.1%) Totalisator - NSW 706.9 719.7 (1.8%) Fixed Odds 328.2 289.3 13.4% Trackside 64.1 70.1 (8.6%) Luxbet 39.1 27.9 40.1% Other 67.2 66.1 1.7% Revenues 1,558.0 1,637.4 (4.8%) Taxes, levies, commissions and fees (1
Slide 17: 3. Wagering: Revenues by state and product
3. Wagering: Revenues by state and product NSW Change Vic Change Total Change $m FY13 on pcp FY13 on pcp FY13 on pcp Thoroughbred 461.7 (1.5%) 234.3 (23.1%) 696.0 (10.0%) Harness 88.9 (2.7%) 48.2 (26.7%) 137.1 (12.8%) Greyhound 156.3 (2.1%) 70.0 (25.3%) 226.3 (10.7%) Totalisator 706.9 (1.8%) 352.5 (
Slide 18: 4. Wagering: Pro-forma
4. Wagering: Pro-forma New Vic FY13 Race FY13 Wagering Reported fields 2 Pro-forma $m Licence 1 Revenue 1,558.0 (22.9) 1,535.1 Taxes, commissions and fees (1,010.8) 13.6 (2.2) (999.4) Variable contribution 547.2 (9.3) (2.2) 535.7 Operating expenses (282.2) 4.1 (278.1) EBITDA 265.0 (5.2) (2.2) 257.6
Slide 19: 5. Gaming Services: Financial data
5. Gaming Services: Financial data Change $m FY13 FY12 on pcp Operating revenue 81.6 - >100% Other revenue 4.7 4.7 0.0% Revenues 86.3 4.7 >100% Operating expenses (28.0) (7.6) >100% EBITDA 58.3 (2.9) >100% D&A (20.8) (0.3) >100% EBIT 37.5 (3.2) >100% EBIT/Revenue 43.5% (68.1%) >100% 19
Slide 20: 6. Keno: Financial data
6. Keno: Financial data Change $m FY13 FY12 on pcp Operating revenue 170.4 153.4 11.1% Other revenue 35.0 29.7 17.8% Revenues 205.4 183.1 12.2% Taxes, levies, commissions and fees (89.1) (81.1) 9.9% Operating expenses (40.8) (40.6) 0.5% EBITDA 75.5 61.4 23.0% D&A (23.3) (15.3) 52.3% EBIT before impa
Slide 21: 7. Discontinued – Victorian Tabaret: Financial data
7. Discontinued – Victorian Tabaret: Financial data Change $m FY13 FY12 on pcp Operating revenue 130.1 1,073.2 (87.9%) Other revenue 0.1 1.0 (90.0%) Revenues 130.2 1,074.2 (87.9%) Taxes, levies, commissions and fees (92.3) (761.0) (87.9%) Operating expenses (7.7) (14.7) (47.6%) Other income 16.3 3.2
Slide 22: 8. Balance Sheet
8. Balance Sheet As at As at Change $m 30 Jun 13 30 Jun 12 on pcp Total current assets 221.3 228.2 (3.0%) Licences 750.3 815.0 (7.9%) Other intangible assets 1,772.4 1,803.2 (1.7%) Property, plant and equipment 308.5 313.3 (1.5%) Other non current assets 92.1 89.5 2.9% Total assets 3,144.6 3,249.2 (
Slide 23: 9. Cashflow
9. Cashflow Change on $m FY13 FY12 pcp Net operating flows 474.8 788.7 (39.8%) Net interest payments (101.5) (104.9) (3.2%) Income tax paid (108.4) (158.3) (31.5%) Payments for PP&E and licences (204.2) (631.0) (67.6%) Sub-total 60.7 (105.5) >100.0% Dividends paid (116.1) (111.4) 4.2% Payment of tra
Slide 24: 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 25: Draft version 14 (29-07-13)
25 Draft version 14 (29-07-13)