Tab NZ has managed to exceed its expectations and the performance of its predecessor during the first month of activity. It has managed to achieve year-on-year growth in terms of total turnover, profit, and revenue in August.
The New Zealand Operator, which made its grand debut in August, is the NZ Racing Board's successor, following a considerable overhaul in the racing industry of New Zealand. The company saw an increase in revenue of 14.9 percent year-on-year to a total of NZD$208.2 million, which is 10.5 percent above budget. The turnover in the sports section increased by 36% to reach $71.7 million. One of the main factors behind that number is the high volume of popular sports events that took place in August. As for the Racing turnover, it succeeded in achieving an increase of 10.1% to a total of $136.2. Domestic racing brought $54.0 million in stakes, while international racing events brought the rest.
TAB NZ Comments about its Great Succeed in August
According to TAB NZ, the analysis showed the main reason behind the great increase in sports betting. The reason is that many of the New Zealanders that placed bets on overseas companies because of the current situation started placing bets domestically on both international and domestic racing events. TAB NZ's gross revenue reached $31.2 million, which is an increase of 9.7% from budget and five percent from last year.
As for gaming revenue, Tab NZ stated that they witnessed a sharp decrease of 26.3% compared to 2019, to reach $2 million. It is mainly because of the measures that Auckland took, as for all of the non-Auckland websites, they are in line with the budget. It also added that after the re-opening of the retail venues in the country's largest city, the retail turnover in Auckland started to return to normal, almost instantly. Tab NZ also stated that it had more than 94k customers during October, which is a number that is close to a typical November, during the NZ Cup, Melbourne Cup, as well as the Rugby World Cup on certain years.
A great percentage of the profit came from wagering, which reached $11.9 million, which was 22.7% above the budget. It also made another $1.4 million in gaming profit, which was below the budgeted contribution by 26.3%. The New Zealand operations, Tab NZ, stated that a combo of high wagering margins and great cost management helped the company surpass its expectations in these rough times.
The Board of TAB NZ Makes Its Statement Clear
The board stated that despite the success in August, it is going to exercise caution about the rest of 2020; especially with everything that is going on around the world. They stated that they are encouraged by the month's performance. On the other hand, they are still cautious, as this is still an early stage of this season, and that they have the ability to meet the year's projections in full.