RACING AND WAGERING WESTERN AUSTRALIA - RWWA Home

DISCLOSURES AND LEGAL COMPLIANCE
30 Explanatory Statement
This statement provides details of any significant variations between the actual results for 2011 and 2012.
Significant variations are considered to be those in excess of 10% or $1.5M
Significant variances between actual results for 2011 and 2012
Comment 2012 2011
Actual Actual Variance
$000 $000 $000
Revenue
Margin (1) 293,093 264,102 28,991
Interest Revenue (2) 2,590 2,208 382
Other Revenue (3) 22,357 19,766 2,591
Gains
Gain on disposals of non-current assets 171 - 171
Expenses
Cost of sales (1) 62,101 51,437 10,664
Wagering Tax (1) 37,616 33,996 3,620
Racing services 14,848 14,066 782
Wagering Services (4) 80,536 77,369 3,167
Support Services (5) 30,236 28,026 2,210
Projects (6) 306 3,618 (3,312)
Grants and subsidies (7) 4,066 5,934 (1,868)
Distribution to racing and sports industries (8) 113,798 107,551 6,247
Loss on disposal of non-current assets - 13 (13)
Grants and subsidies from State Government (9) 36,154 26,944 9,210
Comment
(1) Margin , and the associated Cost of Sales and Wagering Tax all increased against last year as a result of the improved
economic conditions on the prior year. The disproportionate increase in Cost of sales is due to additional cost in acquiring new
turnover.
(2) Interest revenue has increased over last year due to increase in average amount of funds on deposit this year in comparison
to last year.
(3) Other Revenue is higher than last year predominantly due to a one off tax adjustment received from the ATO relating to
prior years.
(4) Wagering Services costs have increased in relation to the prior year mainly as a result of the improved turnover and
resulting increase in direct costs. The depreciation cost has also increased due to the full year impact of the capitalisation of
the Bet Engine.
(5) Support Service costs increased in relation to the prior year mainly due to a one off increase in IT costs incurred to ensure
business continuity through the transfer of skills to key RWWA personnel on the new Bet Engine.
(6) Project costs were less than the previous year due to a reduction in project activity over the previous year.
(7) Grants were lower than last year due to the payment of several large grants during last year, the largest being for the
Pinjarra Racing Pavilion.
(8) RWWA Distribution Policy for 2011/12 allowed for an increase in funding over 2010/11, part of which allowed for the
increase in Racing volume.
(9) Grants and subsidies from State Government increased over last year actuals as this year included a substantial
retrospective component of WA Racefields Grants relating to Corporate Bookmakers.
Page 59.