Tab NZ, the New Zealand betting operator, experienced a shortfall in revenue and turnover during September, despite the government’s removal of all remaining pandemic-related restrictions. The easing of restrictions, including the lifting of mask requirements, had a positive impact on retail traffic. However, Tab NZ cited various factors such as soft economic conditions, abandoned race meetings, and a decline in starters across all racing codes as contributors to the missed budgets.
Revenue and Profit Performance:
During September, Tab NZ’s gross betting revenue amounted to NZ$33.6 million, falling short of the budget by 3.5% or NZ$1.2 million. The reported profit for the month also missed the budget by NZ$1.2 million, totaling NZ$11.3 million. Additionally, turnover reached NZ$212.7 million, falling behind Tab’s budget by 2.0% or NZ$4.4 million. These results follow a trend of revenue and profit budget shortfalls in both July and August, indicating a recurring challenge for the operator.
Factors Contributing to Missed Budgets:
Despite the New Zealand government’s removal of the Covid-19 Protection Framework/Traffic Light System and the subsequent easing of restrictions, Tab NZ faced hurdles that impacted its financial performance. The operator highlighted several factors, including ongoing soft economic conditions and a decrease in starters across all racing codes. Abandoned race meetings also played a role in the missed budgets. Moreover, Tab noted that the average number of thoroughbred starters per race was below the average of the previous financial year, further impacting betting activity.
Operating Expenses and Racing Code Payments:
Operating expenses for Tab NZ exceeded the budget by $100,000, totaling $10.5 million. However, the operator managed to stay in line with the budget in terms of total payments to Racing Codes, which amounted to $12.3 million. Despite the financial challenges, Tab NZ upheld its commitments to supporting the racing industry.
Popular Betting Activities:
During September, notable betting activities revolved around both sports and racing events. The highly anticipated rugby union clash between New Zealand and Australia attracted significant betting interest, with $1.2 million in bets placed. In terms of racing, the Tarzino Trophy G1 race held at Hastings on 10 September drew bets totaling $616,000. These events showcased the continued enthusiasm of bettors despite the financial performance challenges faced by Tab NZ.
Tab NZ experienced a shortfall in revenue and turnover during September, despite the removal of pandemic-related restrictions by the New Zealand government. Various factors, including soft economic conditions, abandoned race meetings, and a decline in starters across racing codes, contributed to the missed budgets. However, the operator remained committed to supporting the racing industry and managed to maintain payments to Racing Codes in line with the budget. Moving forward, Tab NZ will need to address the challenges posed by economic conditions and racing participation to regain financial stability.