Phumelela results 2014

Very interesting that TT subscriptions fell 15%, a wonder if the bright spark that suggested UK racing be dropped will be happy about that now

It was always going to take a knock with that "wrong" call but I read above it remains a burning issue .

I see horse racing done the doe again

Especially when their income is Gtd ( no risk )

It must be easy to solve , cut costs or stakes

Unless it's somewhere else (or being saved for the interview) there is no mention of the open bet-must be a first-hopefully they have realized inaction won't take it away......they need to create a climate of compromise!

Their results all raise new questions and head scratching

Local Other Income miscelanous Jumps 117% but not explained.
International Operations expenses now higher than SA operating expenses. ??? 162 VS 104 million

there is 43 pages to this presentation,sylvester,not sure if its explained better further down

Just like any other company results the beauty is in the eye of the beholder. A cursory glance makes it clear that the only reason local racing which makes a loss continues is that the loss is covered by by-products of the basic product. So to view the results on a local v international basis is misleading.

Interesting was fall in Tellytrack subs by 15%, Advertising and hospitality up over 100%, intellectual property rights fees up 33% including Rand depreciation. However most interesting are the disclosure that on course attendance up 20% but local net betting down 4% so perhaps the increase in attendance needs closer scrutiny of what drives it.

Given the above I continue to wonder about the high price to earnings ratio in a business which needs to grow significantly to justify that ratio. Net asset value per share is no safety net unless assets are incorrectly valued based on incorrect assumptions of future use or there are property options not valued on the statement of financial position.


Draw your own conclusions

Methinks that too many of those attending the racing do so on the basis of invitations and like to be seen (socialites) rather than the regular punters...nothing / little is done for the regular punter to get them to the course...

I like to have a bet almost every day but I only go the course at most 1 or 2 times a year to treat my Dad (a regular if ever there was one...been punting for more than 40 years)...as a regular punter there is nothing there (at the course) to get my Dad and I out of the comforts at home or at the bookie...but the ends that the operators go to to get the socialites to the course for, for example, photo opportunities ??? Boundless...and the contributions these socialites make to the tote pools, etc, etc...zero or close enough to it...