Tab NZ surpasses budget expectations in April
New Zealand’s Tab NZ reported above-budget revenue and profit in April despite operations being hampered by the latest outbreak of the omicron variant of novel coronavirus (Covid-19) in the country.
Betting turnover was 0.8% ahead of Tab NZ’s monthly budgeted figure of $221.7m, while net profit reached $15.3m, which was 2.7% above budget for April. Betting net profit was $14.0m, up 4.5% on budget, though gaming net profit was 13.3% below budget at $1.3m.
NZ also said operating expenses for the month were 4.0% below an initial budget of $10.0m, amounting to $9.6m, while code distributions and other payments were 3.2% above budget at $16.3m.
Tab said its above-budget performance came despite some impact to retail operations due to the omicron outbreak, with this leading to a reduction in foot traffic in the retail and hospitality sector. However, this eased towards the end of the month as the peak of the outbreak passed.
Looking at individual events, the Courtesy Ford Manawatu Sires Produce Stakes (G1) at Awapuni was the most popular racing event, drawing $496,000 in wages. For sports, the rugby league match between Melbourne Storm and the New Zealand Warriors attracted $773,000 in bets.
In terms of financial year-to-date performance, net profit for the nine months through to the end of April was $124.4m, above budget by 0.7%.
Operating expenses for the period were 4.0% below budget at $86.4m, while distributions were 4.0% above budget at $134.2m.