Tab NZ publishes latest trading update

TAB New Zealand or "TAB NZ" for short has provided its latest trading update focused on the 2021/2022 financial year and examined the results for June 2022. In the Monday post, the company approached the subject of finances in the context of a global pandemic and the looming threat of its return.

The company reported a subdued turnover against budget for the month but confirmed that its gross betting margin was more or less aligned with initial expectations. For the time being, TAB NZ noted that most of the hospitality and retail sector can operate without capacity restriction which allows the company to also benefit.

Betting profit distribution has remained at budgeted levels the company assured. Moving forward, the company continues to monitor the evolving COVID-19 situation and is already preparing contingencies in case restrictions are imposed anew, limiting the available events and betting opportunities.

Turnover for June was $197.3m, the company reported, or 3.9% below budget. Gross betting revenue stood at $31.6m or 3.2% below the budget targets. The company offered a further breakdown into the two segments that are under its roof, that is sports betting and racing.

Sports seemed to generate a fair bit of interest with the most significant sporting event in June turning out to be the Super Rugby Pacific final. The game was played between the Crusaders and the Blues and led to $1.36m. TAB NZ also reported an $11m profit for the month, which was $1.7m below the initial budget.

Operating expenses were also below the targeted budget, with $10m during the month, or $200,000 lower than expected. The year-to-date profit reported by the company stood at $146.1m, but still $3.4m below budget. Year-over-year comparison put the profit $17m of the previous period’s results.

Meanwhile, year-to-date operating expenses stood at $107.1m, or $3.4m lower than expected but still above the previous period. Other noteworthy events that generated significant handle include the games in the Rugby League between New South Wales and Queensland and the Rugby Union game between Maori Ali Blacks vs Ireland.

Much of the betting handle during rugby was focused on Rugby League and Rugby Union which is a preferred pastime for Kiwis who are eager to back their favorite teams. Prominent racing events included TAB Stradbroke Handicap, Sky Racing Q22, and others.

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