Tab NZ attributes rising cost of living to June shortfalls
Tab New Zealand (NZ) has missed its turnover and revenue targets, reporting a 3.9% and 3.2% shortfall respectively.
The betting monopoly has reported NZ$197.3m (US$124.9m) in wagering turnover and NZ$31.6m in gross betting revenue (GBR) for June, both below Tab’s budget.
Turnover came up NZ$8.1m short, while GBR was NZ$1m below budget, and this trend extended to virtually every financial metric. For example, it generated NZ$11m in profit, a NZ$1.7m shortfall driven by a drop in betting activity.
While Tab’s gaming business produced NZ$1.7m, this was only NZ$200,000 below budget when compared to betting, which was NZ$1.5m short.
However, operating expenses were also NZ$200,000 lower than anticipated, mitigating June’s overall impact.
Commenting on these results, Tab wrote: “While retail and hospitality was able to operate without capacity restrictions, softening economic conditions also played a factor as customers adjusted to the rising cost of living.
“There has also been a drop in starter numbers and/or across the three racing codes through April, May and June that has contributed to the variance in turnover.”
On a year-to-date basis, Tab’s total profit amounted to NZ$146.1m, NZ$3.4m below budget and NZ$17m less than last year.
However, year-to-date expenses, which came to NZ$107.1m, were also below budget by NZ$3.4m, though still above last year’s by NZ$3.5m.
Looking ahead, Tab added: “The board will continue to factor in potential developments in New Zealand’s response to Covid-19 and the current global financial climate, as to how trading conditions are affected and how this may or may not affect profit distributions.”
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