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Nairac Pledge To Stakeholders

Gold Circle to post R25 million loss as staff cuts and rationalisation kick in

Gold Circle CEO Michel Nairac was interviewed on the Winning Ways show on Monday evening.

He talks about one of the best July Days in years, thanks to great organisation, beautiful weather and the prevalence of favourites which contributed to tote ‘churn’.

He also touches on , amongst others:

July tote turnover was up despite year on year tote figures down 10%

July day security – 30 arrests were made

Greyville track best as it’s been in 10 years

Gold Circle’s plans to increase returns to stakeholders and recent cuts in staffing

Gold Circle to post a loss of R25 million this financial year

Gold Circle to reduce reliance on tote by 30% by 2020

Watch it here:

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8 comments on “Nairac Pledge To Stakeholders”

    1. Who are these guys trying to mislead, tote turn over May be down but fixed odds betting must be raking for billions for Goldcircle.
      So why are they not declaring to the public the profits they are making from fixed odds betting.
      They make it seem as if they are losing money with lower tote turnover but their profits mest be tenfold.
      If not then why hide from the public their profits from Track and Ball.
      These guys are are paid from Goldcircle there Paul Lafferty will ask the right questions.

      1. Hylton they will post a loss of R25 million according to the CEO – you state: ‘fixed odds betting must be raking for billions for Goldcircle’ – can you substantiate that?

        1. Yes, it can be substantiated, in context of what Mr Nairac was reporting on, when he mentioned the “the potential loss of 25 million” he did mention that this is potential loss of revenue as a direct result of 10% decline in tote turnover year on year.
          Reason- His projection is that with the 10% decline, the tote is still on target to turnover 1.4 billion rand by August this year. This means that the tote turnover drop is for year is 100 million rand and the operators revenue loss, from the 100 million rand, is 25 million rand, which is the fixed percentage that the operator earns from the pools and the rest gets paid out as winnings. So the potential 25 million loss is loss of income, which dos not necessarily mean that the company ran a loss for the year. There I say they are misleading because if you do not listen carefully you can get the wrong impression. Secondly he did state the the tote is only generates 50% of their revenue, which brings in 1.4 billion rand, then their fixed odds arm and or other revenue streams should be taking in another 1.4 billion rand, which according to them Mr Nairac should be generating a revenue of 2.8 billion rand a year.
          You can’t have a strong balance sheet if you’re running a loss year on year.
          If they want to publicly talk of company financials the should not report on only 1 income stream, they should give the global picture of the company as a whole.
          I suspect that the other revenue streams are very profitable therefore they make no mention of it and therefore I I say that they are misleading.
          They are just putting this word out in the public domain because they intend to retrench workers.
          In any event it would be nice for the public to know how much they generate from fixed odds betting in relation to how much they pay out on winnings.
          When he mentions increase in returns to stake holders, he fails to mention trainers and jockeys,or maybe he omits they intentionally…

          1. Hylton I suggest you listen again carefully.

            the organisations loss is expected to be 25 million, Mr Nairac said that as depreciation was 38 million they were still in a cash profit…. that in itself is an oversimplification.

            The 1,4 billion number referred to is the value of bets struck, not the wagering income or the roughly 25% take out…. corroborated by last years annual report which shows wagering income to be 376 million which is net off provincial taxes

  1. i walked greyville track with 2 trainers from gauteng friday and saturday before july you must be joking track in good condition maybe good for race 13 on the day not racehorses and jockeys

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