TAB NZ outperforms profit and stake expectations for third straight month

New Zealand's TAB NZ recorded net profits of NZ$14.0m (£7.1m/€8.2m/$9.8m) for May, outperforming its allotted budget for the third month in a row.

The NZ$14.0m was NZ$2.8m more than the forecasted in its budget, with NZ$12.6m coming from betting profits and NZ$2.0m coming from gaming profits. The additional NZ$600,000 in the combined betting and gaming total was due to funds paid to the racing integrity unit (RIU).

This follows on from strong performances in March and April, where the operator also exceeded its budgeted expectations.

TAB NZ’s reported profit for the year stands at NZ$147.2m which is NZ$37.5m more than the budget.

Wagering turnover amounted to NZ$211.3m – NZ$16.5m over the budget and NZ$85.6m more than this time last year.

The number of sporting events during the month contributed heavily, as sports betting revenue was NZ$17.5m better than the budget. The Crusaders vs Chiefs Rugby Union match proved to be the most lucrative sporting event, generating turnover of NZ$738,000.

Total gross betting revenue for the month was NZ$33.9m. This was NZ$3.2m above the projected budget and came at a margin of 16.0%.

Operating expenses were NZ$200,000 less than the budget at NZ$9.9m, while operating costs for the year to date were NZ$700,000 below budget at NZ$99.2m.

Racing code distributions were NZ$16.5m, well above the NZ$11.1m forecasted, putting the total contributions as NZ$12.9m more than the budget for the year to date at NZ$123.1m

Original Article