Tab NZ Fails To Meet Budget Targets
TAB New Zealand has missed its budget targets in terms of turnover and revenue in May, despite the nationwide easing of corona measures. The statutory body reported the relapse in the month of May after above-budget revenue and profit in April. The rising cost of living in the country is believed to be the main cause of the lower numbers.
In its monthly trading update, Tab NZ states turnover of NZ$ 202.7 million was 3.6 percent below budget and gross betting revenue (GBR) of $32.0m was down on budget by 4.4%. The gross betting margin (GBM) of 15.8% was also 0.1% below budget. Profit for the month of May was reported at NZ$ 10.8m, which turned out to be NZ$ 2.4m below budget. At the same time, operating expenses were NZ$ 10.6m, which was NZ$ 0.4 above budget.
Nonetheless, Tab NZ reports the key performance results for May were in line with the overall positive trends of the financial year of 2021-22. New Zealand’s only regulated racing and sports betting agency also revealed the top sporting events by turnover.
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Bettors Adjusted To The Rising Cost Of Living
As in other parts of the world, the rising cost of living is expected to affect the overall spendings on gambling, still in 2022. In New Zealand this has already happened as a Tab NZ spokesperson states:
The Omicron variant eased slightly compared to a month earlier, seeing New Zealand at orange in the Corona traffic light system. This resulted in a rise in foot traffic in the retail industry throughout May, although not at the same numbers of last year. The turnover dipped against the budget in the month of May, with the gross betting margin also below budget. The changing economic conditions played an important role as consumers seem to have adjusted to the rising cost of living.
Most Important Sports Events
The report also discusses the most important sports events of the concluded period with horse racing being one of them. Average NZ thoroughbred starters per race was 10.7, which is just above the year-to-date average of 10.6, whilst the peak turnover for a domestic meeting was NZ$ 1.9m on 14 May 2022 for the Campbell鈥檚 Infrastructure Cup Day at Arawa Park. The most important sports event by turnover for April was the Warriors vs Sharks National Rugby League match that resulted in NZ$ 0.58m.
Tennis was the most important in-play sporting code taking up 25% of in-play turnover whilst the national rugby league was the leading pre-match sporting code with 24 percent of pre-match turnover. From 1 August 2021 to 31 May 2022, profit was reported at NZ$ 135.2m, which was NZ$ 1.6m below budget and NZ$ 12.0m below the same period last year. The total operating expenses in this period were NZ$ 97.0 million, which was NZ$ 3.3 million below budget and $2.3 million above last year.
About Tab NZ
TAB New Zealand, often referred to as TAB NZ, is a statutory body founded through the Racing Industry Act 2020 that provides both land based and online betting services to New Zealanders. The organisation makes returns back to New Zealand racing and sporting organisations and whether players bet with the TAB on the greyhounds or make their wager on the All Blacks, every NZD contributes to grassroots racing and sports in the country. The returns also help the livelihoods of New Zealanders active in these sectors. Approximately NZ$ 170 million per year is returned to New Zealand racing and sports.
