TAB New Zealand (TAB NZ) provides the fifth monthly trading update for the 2022/2023 financial year, with the results and highlights for December 2022.
TAB NZ operated through its online and retail channels throughout December. Turnover was up on budget, with a busy December racing season and the culmination of the Football World Cup contributing to turnover. Gross betting revenue (GBR) was below budget, which was driven by the gross betting margin (GBM) sitting below budget.
Overall field sizes across all three codes were either up on, or on par with, the year-to-date average, and sport turnover was considerably up due to the Football World Cup. However, the reduced betting margin in December - particularly driven by heavy support for Argentina in the World Cup Final - had an effect on the overall result.
Operating expenses were slightly above budget due to continued investment in the growth strategy and a renewed focus on growing the Elite customer base.
Wagering Performance Summary
In December, the fifth month of the 2022/23 financial year, turnover of $255.9m was 6.2% ($15.0m) above budget. GBR of $38.1m was below budget by 2.3% ($0.9m) and GBM of 14.9% was 1.3 percentage points below budget.
Racing
Average NZ thoroughbred starters per race in December was 10.9, above the YTD average of 10.6, and the peak meeting turnover of $5.2m was at the Boxing Day Races at Pukekohe. Harness average starters per race was 10.1, matching the YTD average, and the peak meeting turnover of $2.1m was on 4 December for the Harness Grand Prix at Addington. For greyhound racing, the average starters per race was 7.4, matching the YTD average. The peak turnover for a domestic greyhound meeting was $417k on 1 December at Addington.
Sport
The top sporting event by turnover for December was the Football World Cup final featuring Argentina and France with turnover of $2.0m. Basketball was the leading in-play sporting code accounting for 44% of in-play turnover while football was the top pre-match singles sporting code with 49% of turnover.
December Operational Performance
- Reported Profit for the month was $14.0m, which was $2.4m below Budget.
- Operating Expenses were $10.6m for the month, which was $0.4m above Budget.
- Year to Date Reported Profit is $61.7m, which was $9.7m below Budget
- Year to Date Operating Expenses were $53.7m, which was $2.4m above budget.
December Distributions
Racing Codes were paid $17.2m in distributions and other payments for December, versus $17.4m budgeted. This consisted of TAB NZ Betting Profit (listed as Fixed Distribution in the table below), offshore bookmaker commission fees, which are based on actual turnover (termed Betting Information Use Charges (BIUC) in the table below), and Betting Duty/Levy repeal.
Top 10 Racing events by turnover
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Top 10 Sporting events by turnover
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