TAB NZ Shares June Monthly Trading Update, Reported Profit Is $11M

TAB New Zealand has shared the June 2022 monthly trading update as a part of the 2021/2022 financial year. The report states that the performance was down on the positive trend of the year as turnover reached $197.3 million, which is 3.9% below budget. Gross betting revenue was 3.2% down on budget ($31.6 million) and the gross betting margin was 0.1% above the budget (16%). 

June Operational Performance Explained in Detail

The reported profit for the month of June was $11 million, $1.7 million below budget. The operating expenses were $10 million, which is $0.2 million below budget. 

Out of the $11 million in reported profit, betting profit accounted for $9.3 million, while the gaming profit was $1.7 million. Betting profit was $1.5 million below budget, while gaming profit was $200,000 below budget. 

Racing codes got $13.2 million in contributions and other payment sections. Fixed distribution gained $10.7 million, Betting Information Use Charges, reported under BIUC, was $1.6 million and betting levy repeal was $0.9 million. 

In terms of turnover, the top 5 racing events were TAB Stradbroke Handicap (G1) race number R8 ($411,000), Sky Racing Q22 (G2) race number R6 ($371,000) Bream Bay Painting R10 ($328,000), Animal Feed Barn 19th Birthday Mile ($323,000) and Treasury Brisbane J.J. Atkins (G1) ($318,000). 

The top 10 list included Channel 7 Queensland Oaks (G1) ($311,000), ITM/GIB Progressive Winter Championship Series ($301,000), Rhys Mischefski, Bayleys Whakatane Handicap ($290,000), Team Wealleans Tauranga Classic ($289,000) and Fairview Motors Matamata 1400 ($287,000). 

Blues v Crusaders was the leader on the list of top sporting events by turnover. This event had a $1.4 million turnover. The top 5 lists included New South Wales v Queensland ($780,000) on June 26, New South Wales v Queensland on June 8 ($766,000), Crusaders v Chiefs ($615,000), and New Zealand v Tonga ($610,000). 

Blues v Brumbies ($591,000), Maori All Blacks v Ireland ($586,000), Boston Celtics v Golden State Warriors ($524,000), New Zealand Warriors v Cronulla Sharks ($514,000), and Golden State Warriors v Boston Celtics ($493,000) closed off the top 10 list. 

May’s Operational Profit Was Slightly Below June’s Profit 

Even though TAB NZ operated above budget in April, May resulted in under-budget operations. However, May’s report suggested that the company actually had a slightly lower reported profit than June. The May profit was $10.8 million, $2.4 million below budget, and $0.2 million lower than June. 

Racing codes in May were paid $13.8 million, which is $0.6 million higher than in June. Out of those, BIUC had $1.8 million, and betting levy repeal had $0.9 million. 

TAB Kingsford-Smith Cup (G1) was the top racing event by turnover ($328,000) and Cronulla Sharks v New Zealand Warriors, which took place on May 8, was the top sporting event in terms of turnover ($584,000). 

In June, New Zealand’s government announced that it will spend $75 million on a new program for preventing gambling harm and TAB NZ was listed as one of the entities that will fund the program.