TAB NZ exceeds profit and wagering expectations again in April

Gross betting revenue in April amounted to $35.3m, which was $2.6m above budget for the month and 11.4% higher than in March.

TAB NZ said this was primarily due to wagering turnover being $2.0m above its budget target for the month at $209.0m, also noting that turnover during April was more than double the $101.6m recorded in the same month last year.

The Manco Easter Handicap horse racing event at Ellerslie was the most successful event across racing and sports in term of turnover in April, drawing $599,000 in turnover. 

In terms of sports, single biggest event of the month was the Crusaders vs. Highlanders Super Rugby match, which saw $326,000 in turnover. 

TAB NZ said wagering within its sports business was helped by pre-match betting on rugby union and rugby league events, as was as in-play wagering on basketball, particularly North America’s National Basketball Association (NBA).

Higher revenue and turnover meant helped push profit to $14.8m in April, which was $4.2m ahead of the $10.7m budget for the month. Betting profit was $4.4m ahead at $14.1m, while gaming profit reached $1.6m, which was $100,000 above budget.

Operating expenses were $400,000 above budget at $10.5m, while distributions to racing codes amounted to $11.9m, some $900,000 ahead of the initial budget for the month.

During the month, TAB NZ also confirmed a one-off, special distribution payment, of $5.0m, to racing codes, following a scheduled review of its trading performance for the third quarter. This was in addition to TAB NZ’s budgeted distribution commitment for this year and was paid on 20 May.

Looking at year-to-date performance, total profit was $33.1m above budget at $131.7m, with $121.6m attributed to betting and $15.4m to gaming. 

Distributions to racing codes in the year-to-date amounted to $132.0m, some $7.5m ahead of budget.