Increased Foot Traffic in May Could Not Help TAB NZ Meet Budget

New Zealand betting services provider TAB NZ released today its tenth monthly trading update for the 2021/22 financial year covering the performance in May 2022.

Financial Performance Indicators

TAB NZ failed to meet its turnover budget targets in May despite the slight ease of the impact of the current coronavirus outbreak which resulted in increased foot traffic in the retail and hospitality sector.

Turnover in the month was AU$202.7 million ($139.9 million), down 8.6% from AU$221.7 million ($153 million) registered in April and 3.6% below the May budget.

Gross betting revenue of AU$32 million ($22.1 million) was 13% down from AU$37 million ($25.5 million) in April and 4.4% down on the monthly budget, while gross betting margin of 15.8% was 0.9% lower than April’s 16.7% and marginally below TAB’s May budget.

Profit reported by TAB in May at AU$10.8 million ($7.5 million) was AU$2.4 million, or 18% below the May budget while operating expenses of AU$10.6 million ($7.3 million) went above the budget by nearly 4%.

TAB explained the inability to meet budgeted targets with the softening economic conditions and customers facing rising costs of living and having to redirect funds for entertainment elsewhere.

From August 1, 2021, to May 31, 2022, TAB NZ reported profit of AU$135.2 million ($93.3 million), 8% less compared to the previous comparable period and just over 1% below the budget, while financial year-to-date operating expenses of AU$97 million ($66.9 million) exceeded the previous comparable period by 2.4% and were 3.2% below the budget.

Highlights by Verticals

Accounting for its performance in racing, TAB outlined that the average thoroughbred starters per race in New Zealand in May was 10.7, slightly above the year-to-date average of 10.6. Turnover hit its peak on May 14 during the Campbell’s Infrastructure Cup Day at Arawa Park, AU$1.9 million ($1.3 million).

Harness races saw average starters of 9.8 per race, again below the year-to-date average of 10.2, while harness turnover reached its peak on May 5 at Addington, AU$1.1 million ($760,000).

In greyhound racing, TAB achieved a turnover peak of AU$453,000 ($312,000) on May 13 at Addington, while average starters per race of 7.5 were just under the year-to-date average of 7.6.

In sports, TAB NZ’s highest turnover event was the National Rugby League match between the Warriors and the Sharks on May 8 which generated AU$580,000 ($400.2 million), while in pre-game betting, rugby accounted for 24% of the total turnover. Tennis was the sport that generated the largest turnover in in-play betting accounting for 25% of the total.