Rising Cost of Living Continue To Affect Tab NZ Targets
After failing to meet the budget targets in May, Tab NZ once again failed to meet their budgetary targets in June caused by the higher cost of living in the country. Wagering turnover for the month of June amounted to NZ$ 197.3m, 3.9% or 8.1m below budget.
Net profit in June reached a total amount of 11.0m, approximately 1.7m below the normal budget set by Tab NZ of 12.7m. Betting profit 1.5m turned out to be under budget at $9.3m whilst gaming profit also was $200,000 off budget at $1.7m.
Looking back at its monthly performance, Tab NZ said the main reason for missing their budgetary targets was that consumers were not spending as much as hoped for as the higher cost of living started to affect the country. It is expected that costs will continue to rise and that spendings on gambling related activities will be felt as a result.
Also read: NZ Fails to Meet Budget Targets in May
The Aftershocks of Corona
In the same monthly report, Tab NZ states their operating expenses for the month were $200,000 lower than their initial budget of $10.0m, at $9.6m, whilst code distributions and other transactions were $100,000 above budget at $13.2m. Both retail and hospitality were allowed to fully operate without any capacity, corona related restrictions, but Tab NZ believes the pandemic continued to be a crucial factor throughout the month of June.
Decrease in Starter Numbers
Additionally, Tab NZ states there was an overall decrease in starter numbers across the three racing codes through the period April-June, which successively contributed to the difference in turnover. The TAB Stradbroke Handicap (G1) was the most popular racing event in the month June, resulting in a $411,000 in wagers, whereas for sports events in general, the Eden Park match between the Blues and Crusaders ranked at the top spot with a $1.4m turnover. As for year-to-date performance, total net profit for the 11 months up to and including June was $141.1 million, about $3.4m below budget, whilst distributions were $5.3m above budget and resulted in a total amount of $161.2m.
About Tab NZ
TAB New Zealand is a statutory body established through the Racing Industry Act 2020 and gives Kiwis online betting products in both land based venues and on online platforms. With their revenue Tab NZ support racing and sporting organisations whilst they also help to develop livelihoods of New Zealanders that are active in the sector. Annually, about $ 170m is returned to racing and sports in NZ. TAB NZ has offices in different parts of New Zealand including Wellington, Auckland, Palmerston North, and Christchurch.
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