TAB NZ Reports $6.6M in Profit for September

New Zealand’s only racing and sports betting agency, TAB NZ, released its latest trading update, revealing figures for its performance in September this year.

TAB NZ Reveals Data for Performance in September

The agency revealed that the trading update for September 2022 is the second monthly trading update as a part of the 2022/2023 financial year. Judging by the recent figures, TAB NZ’s reported profit in September hit NZ$11.3 million ($6.6 million) or NZ$1.2 million ($697,000) below budget. Additionally, TAB NZ released details regarding its operating expenses that in September were NZ$0.1 million ($58,000) above budget, hitting NZ$10.5 million ($6.1 million).

More details released by TAB NZ reveal the year-to-date profit for the agency. According to the latest figures, the year-to-date reported profit hit NZ$21.7 million ($12.6 million), making it NZ$2.5 million ($1.5 million) below budget. On the other hand, TAB NZ’s year-to-date operating expenses increased to NZ$21.0 million ($12.2 million). This marked NZ$0.5 million ($290,000) above budget.

The agency’s latest report also unveiled data regarding its gross betting revenue (GBR) and gross betting margin (GBM). TAB NZ revealed that its turnover was NZ$212.7 million ($123.6 million), down NZ$4.4 million ($2.6 million) or 2.0% below budget. What’s more, GBR hit NZ$33.6 million ($19.5 million), down by 3.4% or NZ$1.2 million ($698,000 million) on budget, while GBM was 15.8% or 0.2% below budget.

“In September, the second month of the 2022/23 financial year, key performance results for TAB NZ were slightly down on the overall positive trends of the previous financial year. Turnover of $212.7m was 2.0% ($4.4m) below budget. GBR of $33.6m was down on budget by 3.4% ($1.2m) and GBM of 15.8% was 0.2 percentage points below budget,“

explains a statement released by TAB NZ

Easing COVID-Related Restrictions Didn’t Offset the Results

The recent results aren’t what was expected, considering the disappearance of COVID-19 restrictions. It was on September 13 when the New Zealand Government eased all restrictions related to retail and hospitality. This resulted in an increase in traffic for TAB NZ’s retail locations.

“While the easing of mask restrictions had a positive impact on retail traffic, other factors – including the continuing soft economic conditions, abandoned race meetings, and another month of a drop in starters across all three racing codes – contributed to the above results,“

added TAB NZ

However, the company said that the financial results were still impacted by other factors such as abandoned race meetings and economic conditions. Last but not least, TAB NZ revealed that its board will “continue to factor in the current domestic and global financial climate, and the potential impact of any further ongoing trend of a drop in starter numbers as it assesses future distributions in the 2022-23 financial year.”