Don't You Believe It

The Chiefs are all back - downgraded to GMs under Dean, but now.......$$$$$$

Because they only made $75m while they paid out $88m - i.e. they are giving more to the codes than they are making. False economics and the merry-go-round has stopped now with Covid in the 2nd half year. Desperate times. Thanks John Allen (and Bayliss, Brown, Hansen).

They only get around 2% for your betting. So if you bet $100 they make $2 whereas if you bought a beer they make $5. The TAB attracts foot traffic, but they rely on it also eating and drinking.

I was looking at it more from a total turnover for the day. One meeting alone will always do better than sharing punter interest across two. A typical Sat should be doing $6-7m turnover - are they anywhere near that? They used to publish the stats but I can't find any so assume the worst.

They would have the turnover numbers by the next day. The fact that no press releases have shouted out how strong the turnover was can be read as they are weak. Happy to be shown otherwise.

Henry and Woodham at least. Ex-NZ Post mates of John Allen and utterly unaccountable for the wasteful "investment" of the past five years. They have collectively destroyed the balance sheet on a prayer of windfall gains. Dreamers and charlatans.

Reading their statement of intent they are planning to "save" 10% on staff costs this year. $55m vs $61m last year. I guess there is a cleanout going on. Usually these SOI's are a big set of future promises that hardly eventuate, so when they say they'll increase profits this year by~$30m then you know that they'll be lucky to get half that. As if! When have they ever successfully delivered $30m more? Liars.

If TAB managemnent cant sell the biggest day to higher turnover levels then they are all truly incompetent. Doubled customers? I don't think so. But they have reduced the balance sheet and seen real profits shrink under at least ten years of neglect.

The last one was late - was due in 2013, but published in 2014 referencing late 2013 as the date of auditing. Under the Racing Act 2003 the P&E audit must be done at least every five years, therefore is due this year. Does anyone expect to see this published in 2018? The 2014 published report makes for interesting reading. The new "Bayliss" capability team from the BNZ bank was going to solve all the funding woes and promised around $160m in industry profit by 2016 - rising to $180m by 2018. How's that going? At the same time they hired a lot of expensive management to execute under the watchful eye of the Board with regular monitoring and updates promised to all and sundry. How's that going? I know the Messara report will be occupying the Racing Minister first and foremost, but it is worth referencing past failed promises from new CEOs and Boards whilst promising this time it will be different. Otherwise it won't. In 2007 the Government gave back $30m in tax relief - how did that go? What would be different now if another $30-$50m was given to Racing? Would the money mostly end up in a few of Winston's mates (Breeders) pockets like last time? https://nzracingboard.co.nz/sites/default/files/documents/NZRB-Performance-and-Efficiency-Report-2014.pdf

Profit for half year was down on a year ago. And Equity on balance sheet down $7m. Would you invest?

Wasn't wrong was I? Had its first reading back in August - but not sighted since. Other priorities. And even when / if it passes it will be until 2019/2020 season before money "rolls" in. And the CEO now telling the industry they are losing $1m a month with delays. That'll be eating into the ability to bankroll the $9m stakes gift after this year. Desperate times calls for desperate management - but after three years in pulling the pin next year would be about right, plus the Chair goes.

The NZRB has their latest half year report out. Looking past the spin they: 1. made less money than a year ago (net profit down). 2. have further eroded the net equity on the balance sheet. $15m deposit cashed in and net equity has dropped ~$7m. But , but, but.... the "strategic initiatives" are all doing great and delivering (well those that have been delivered). Cue the Tui ad........

GM roles earn over $200k. There will be at least twice that many in direct reports under these roles also from NZ Post. Henry was at NZTE I believe - join the dots. Trough. Gravy. Train.

Not quite - coincidence that the same amount crops up twice. My missing $21m is the gap between promises made four years ago and actual results delivered in terms of profits. $21m short. The pokie gap is basically I think due to the compulsory duties and GST payable that also gets deducted from the "win" or margin reported. It really is a low margin game 5c in the dollar. BTW - the inclusion of the pokie "turnover" with betting turnover is a complete rort and should be stopped in the interests of "transparency". It only came about when Bayliss saw the opportunity to talk up the size of his.... business to justify his exorbitant salary ($2 billion business yadda yadda....). No where in the world does a gambling company "report" like we do.

Ahh the good old annual report. At last we can see how the wonderful promises of yesteryear are delivered and gauge the truthfulness of the latest promises of success to come. But wait...In the 2013-2016 Statement of Intent (SOI), the Banker Bayliss promised that distributions of profit would be $160m-$180m by about now (next year actually). In fact it even forecast $161m for 2015/2016 - last year. Probably expected $165m for 16/17 - and yet the annual report now only reports $144m (before fiddling the numbers with "strategic spending"). That's $21m of promised profit missing. And they want you to trust them now? $200m here we come.....? There is a saying "all hat and no horse".