Home > Finance > TAB NZ surpasses budget expectations with revenue and profit growth in January

TAB NZ surpasses budget expectations with revenue and profit growth in January

| By Robert Fletcher
New Zealand’s TAB NZ exceeded budget expectations in January, reporting year-on-year increases in gross betting revenue and net profit.

Gross betting revenue amounted to NZ$38.1m (£19.7m/€22.8m/US$27.6m) for the month, up 43.8% from $26.5m in the same month last year and $7.4m above budget for January.

The monthly total was also up 4.4% from $36.5m in December of 2020.

Turnover in January was $40.2m above budget at $236.0m, which TAB NZ said was driven by an $8.1m increase in sports wagering, $9.7m rise in international turnover, $18.6m jump in domestic racing betting and $3.8m jump in turnover from VIP gambling.

Focusing on betting activity, TAB NZ said turnover on thoroughbred racing in New Zealand during the month was $57.6m, helped by record $6.7m turnover at New Year’s Day racing at Ellerslie.

Turnover on domestic harness racing was $23.1m for the month and greyhound racing $12.5m. Outside the country, wagering on Australian events was driven by thoroughbred racing.

In terms of other sports, turnover reached $68.3m, some $9.1m ahead of budget, with almost 43.0% of monthly turnover attributed to basketball betting, the majority of which focused on North America’s National Basketball Association.

Operating expenses for the month were $300,000 below budget at $9.9m, while TAB NZ paid $13.3m to racing codes, above the $12.5m budgeted for January.

Net profit for the month reached $17.1m, which was 44.9% ahead of budget for January and also $5.8m higher than the same month last year. Some $16.3m of net profit was attributed to betting activity, and the remaining $1.4m to gaming.

For the financial year to date – the six months through to 31 January 2021 – TAB NZ said net profit reached $94.5m, which was $25.9m ahead of budget.

The organisation paid $74.4m to racing codes during the period, which was also ahead of budget by $5.6m.

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