Tab NZ reports 6% revenue rise with help of government grant
Tab New Zealand (Tab NZ) has reported revenue of NZ$369.6m (US$259.6m) for the 12 months to 31 July, a 6% rise from the previous year.
Revenue for the period was, however, aided by a government grant of $41m to help mitigate the impact of the pandemic.
The sports betting operator reported a 3% decline in net betting revenue to $264.4m, with net gaming revenue decreasing 9% to $26.3m, with both verticals impacted by the temporary suspension of activities due to COVID-19 restrictions across the country.
Revenue from New Zealand racing shown overseas meanwhile fell 11% to $19.5m.
Profit before distributions amounted to $162.5m, a 19% year-on-year increase.
“From a business perspective, performance was really a game of two halves,” said Tab NZ executive chair Dean McKenzie.
“Management accounts for the first six months showed an improvement against the same period last year, but were marginally down against budget.
“However, the second half of the year was dominated by the impact of Covid-19, with the industry and TAB requiring a support package to assist cash flow to ensure it could manage the impact of COVID-19.”
Tab NZ also announced its October trading performance, reporting gross betting revenue of $37.7m
The total was aided by the return of sport, namely the All Blacks’ matches against Australia and the National Rugby League final between the Penrith Panthers and Melbourne Storm.
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