Both Tab NZ July Revenue and Turnover Below Budget
In the month of July, Tab NZ failed to meet their budgetary targets, naming multiple reasons for the results. The turnover in July was 5.7% below budget at NZ $203.5m. The revenue and turnover shortage for July come after lacking figures in June and May.
Gross betting revenue was $32.6m in July, approximately 4.8 per cent below the budget of $34.2m. The gross betting margin, however, was 16%, approximately 0.2% above budget. Tab NZ monthly report shows a profit of $8.7m for the month of July, which is a $5.2m budget shortfall. One of the reasons for the lower numbers were the higher than average operating expenses, reported at $1.7m above budget at a total of $11.9m for the month.
Also read: Tab NZ Fails To Meet Budget Targets
$5.2m Budget Shortfall in July
Numbers for the last three months have been lower than they are supposed to be with the statutory body naming the aftershock of the pandemic and the higher cost of living as the main reasons for the lower numbers in recent months. Tab reported a profit of $8.7m for the month of July, representing a significant budget shortfall of $5.2m. One of the main reasons for this were the higher-than-normal operating expenses, which came in at $11.9m for the month – around $1.7m above budget. This compares to June’s $11 million profit, which was also $1.7m below budget. In May, Tab NZ stated $10.8m in profit.
Full Year Stats Show Drop
Taking a closer look at the full year from 1 August 2021 to 31 July 2022, the profit was reported at $154.8m, a decrease of $23.5m compared to the previous 12 months, and $8.5m below budget. This compared to full year operating expenses of $119m, which were $5.4m above the previous year, but $1.7m below budget. General expenses increased over the month July thanks to a combination of restructuring costs, as well as effective customer acquisition and retention campaigns.
Tab NZ communicates that the combination of factors that contributed to the lower betting revenues include “weakening economic conditions” that have severely impacted leisure consumer spending. Other reasons were fask mask obligations in brick and mortar venues, cancelled races due to weather conditions, and an overall decline in the starter numbers in two of the three racing codes.
About Tab NZ
TAB NZ or Tab New Zealand, often referred to as TAB, is a statutory body founded through the Racing Industry Act 2020. Since its foundation, it has given Kiwis a number of betting services and products for both brick and mortar venues and online platforms. Tab NZ’s revenue is used to support racing and sporting organisations in the country as well as social projects. Each year, more than 170 million New Zealand dollars are invested in racing and sports in the country of New Zealand. TAB NZ has branches in both the northern and southern islands, in cities like Wellington, Auckland, Lower Hutt, Hamilton, and Christchurch.
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