What it takes to run a billion-dollar racing P&L.
At Sportsbet I was accountable for the performance of a billion-dollar racing division across thoroughbreds, harness, greyhounds and international racing, leading a team of up to 35 and sitting on the executive forum overseeing business performance.
Why it matters
At that scale, results swing week to week and the real skill is knowing which movements matter. Good P&L management means reading the underlying trend, acting early, and leading change across trading, product, finance and risk, including racing-focused technology changes, so decisions are made with the whole picture in view.
How I go about it
One honest view of the P&L
Turnover, margin, promotional cost, product fees and net revenue, by code, meeting and customer segment, in a single view the whole business trusts.
Read the trend, not the week
Normalise for results volatility so you see momentum clearly. Underlying indicators can be strong through a run of bad luck, and weak behind a lucky one. Decisions should follow the trend, not the noise.
Build levers before you need them
Model the impact of pricing and promotional levers against budget in advance, so when pressure comes the options are already sized and it can be met early and deliberately, rather than with late, blunt cuts.
Not all trade-offs are equal
Higher margin means less money recycling back through the book, and that effect is far stronger on some products than others. The right balance between margin and turnover depends on how each product behaves, not on one rule for all.
This page sets out my general approach. Specific data, methods and tools from previous employers remain confidential.
What this means for your business
Operators
A practical way to run and report a wagering P&L, see the real trend and prepare for budget pressure early.
Racing bodies
An operator-side view of how your product is weighed against others in budgets and trade-offs, and what that means for your fee income.
Investors
An independent read on how well a wagering business is really run, beyond the headline numbers.