Tab NZ falls short of budgets despite withdrawal of last Covid-19 measures

Gross betting revenue reached NZ$33.6m (£16.9m/€19.7m/US$19.5m), which was below budget by 3.5%, or $1.2m.

Reported profit for the month was $11.3m, which was also behind budget by $1.2m, while turnover amounted to $212.7m, missing Tab’s budget by 2.0%, or $4.4m.

The followed similar results in both July and August, during which Tab fell short of revenue and profit budgets.

September’s missed budgets came despite New Zealand’s government having dropped the Covid-19 Protection Framework/Traffic Light System from 13 September, which eased the last of all remaining restrictions in retail and hospitality.

Tab said the easing of mask restrictions had a positive impact on retail traffic, other factors, including the continuing soft economic conditions, abandoned race meetings and another month of a drop in starters across all three racing codes, contributed to missed budgets.

The operator also noted the average number of thoroughbred starters per race was 10.1, below the average of 10.6 in its 2022 financial year.

Operating expenses were $100,000 above budget at $10.5m, though total payments to Racing Codes during the month stood at $12.3m, in line with budget. 

In terms of betting activity, the most popular sporting event to bet on was the national team’s rugby union clash between New Zealand and Australia on 24 September, which attracted $1.2m in bets. 

For racing, the Tarzino Trophy G1 race at Hasting on 10 September drew $616,000 in bets.