NZRB statement of intent

The New Zealand Racing Board (NZRB) has released its Statement of Intent for the years 2017-2019.

The Statement of Intent sets out NZRB’s strategic focus for the coming years and financial forecast through to 2018/19. Over the next 24 months, NZRB will be driving major change in order to address the challenges facing the New Zealand domestic racing industry.

The initiatives identified by NZRB will improve NZRB’s long-term profitability by more than $50 million per year once implemented, and require an investment of ~$60-75 million. These initiatives are:

• Customer Strategy*
• Channel Strategy*
• Offshore Betting
• Optimise the Calendar
• Fixed Odds Betting platform

In addition, NZRB will continue to prioritise re-engineering the NZRB cost model and ongoing improvements to our core technology.

Total Net Profit is forecast to lift from $148.0 million in 2016/17 to $164.5 million by 2018/19, not including the impact of the currently identified key strategic investments, other than the anticipated increases in revenue due to new race fields legislation.

NZRB is acutely aware of the fine balance between providing the industry with an assurance of funding in the short term to maintain the industry, while investing in longer-term change to build a sustainable future for all.

“We are at a critical point where industry leaders and participants must commit to addressing major decisions on industry governance and structural change. At the same time, NZRB needs to invest, innovate, and deliver a more competitive business or service offering for our current and future customers, and by so doing, continue to generate adequate returns to sustain the industry.” NZRB Chair, Glenda Hughes.

“The New Zealand racing industry has enjoyed many individual successes over the past season. The achievements of our animals, breeders, jockeys, drivers, and trainers have underpinned the New Zealand racing industry’s place as a major employer and contributor to the national and regional economies. Ours is an industry that deserves domestic and international support. However, while there is great promise, there are persistent and continuing challenges which must be addressed if we are to capitalise on this success and achieve our full potential.” NZRB CEO, John Allen.

* Note – The Customer and Channel Strategy initiatives share some work and costs/benefits so are combined for financial purposes.

 

Click here to read the Statement of Intent 2017-19.

 

Courtesy of NZRB