Tab NZ exceeds expectations in July but braces for new lockdown hit

| By Nosa Omoigui
Tab New Zealand (Tab NZ) has recorded profit figures of NZ$15.1m (£7.6m/€8.9m/$10.5m) for the month of July, exceeding budget expectations by NZ$3.1m.

The NZ$15.1m represents a 9.4% increase on the NZ$13.8m from last month. Betting profits were NZ$13.4m, and gaming profits were NZ$1.7m.

Wagering turnover for the month came to NZ$215.5m, which was NZ$15.9m above budget and up from NZ$209.5m in June.

Gross betting revenue for July was $35.6m, a NZ$1.8m increase from the previous month. Sports wagering was the main factor in figures coming in over budget, with overall sports betting figures coming to NZ$22.6m over budget.

Euro 2020 proved to be popular among customers, with the Italy vs England final being the sporting event which generated the most turnover – NZ$972,000. NZ$802,000 came from the New Zealand vs Fiji rugby union fixture, and third was the New Zealand vs Tonga match which brought in NZ$640,000.

In terms of racing, the Powerworx Opunake Cup was the most popular with turnover of NZ$386,000. This was followed by the Hirepool race at Ruakaka which raised NZ$334,000.

However, the operator warned that the country’s latest lockdown may have a negative effect on revenue.

A statement from Tab NZ said: “Although the TAB continues to operate successfully through its online channels during Alert Level 4, the current lockdown will have revenue-related impacts due to domestic racing being shut down, as well as the TAB’s retail and gaming networks. These impacts will be quantified in our monthly performance update for August, which you can expect to receive in a month’s time.

“The TAB is in a much more robust position financially than during last year’s nationwide lockdown, however, this is an evolving situation and we will continue to focus on the business at hand while keeping our stakeholders up to date.”

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