As in previous months, customers’ discretionary spend was impacted by the rising cost of living, which alongside health restrictions, caused Tab NZ to miss its turnover and revenue targets.
In total, Tab generated NZ$198m (US$113m) for August, NZ$12.3m below budget. Meanwhile, gross betting revenue (GBR) fell short of Tab’s target by NZ$2m, amounting to NZ$31.5m for a 6% shortfall.
Throughout August, Tab continued to operate its online and retail channels, but this latter segment was affected by pandemic-related health restrictions.
New Zealand’s Covid-19 Protection Framework, which ended in mid-September, laid out three “traffic light” settings.
During August, New Zealand’s Covid situation was “orange,” which largely allowed residents to return to normal but required them to wear a face mask in many indoor locations.
Tab said mandatory mask wearing was responsible for “deterring a section of customers from visiting.” In addition, several race meetings were abandoned due to the weather.
August also saw a drop in starters, continuing a trend that began in April. Average New Zealand thoroughbred starters per race was 10.3, slightly below last fiscal year’s 10.6.
Operating expenses for August, meanwhile, exceeded Tab’s budget by NZ$0.3m, reaching NZ$10.5m. This, Tab said, was due to restructuring costs, as well as investments in customer retention and acquisition.
Going forward, Tab “will continue to factor in potential developments in New Zealand’s response to Covid-19” and “the current domestic and global financial climate,” among other factors.