Reported revenue for Tab New Zealand is up, and it’s based on a 12 month period ending on 31 July. A 6% rise was reported when compared to financial results for the previous year. A total of NZ$369.6 million was reported even when some sectors of the overall revenue saw a decrease. Due to difficulties in the industry in the latter part of the financial year, revenue was bolstered by a government grant to the tune of $41 million as an aid to weather the storm.
Tab New Zealand has been part of the sports betting industry for nearly 70 years, which makes sense that the government would provide aid to an institution that has been part of the country’s long history. Even with its experience, losses were accounted for at the end of the financial year. Net betting revenue came in at $264.4million showing a decline of 3% from the previous year. A decrease of 9% was also reported for net gaming revenue, totaling$26.3m. The main reason for the decline in both categories comes down to the shutdown and limited gaming activity in recent months.
Furthermore, racing from New Zealand broadcasted overseas came to a total of $19.5 million which also represents a decline of 11%. Even with these decreases year-on-year, Tab New Zealand saw an increase of 19% for profits before distribution coming in at a total of $162.5million.
Dean McKenzie, executive chair for Tab New Zealand went on to say that the performance seen this past year was split in half. The first six months of the financial year showed improvement when compared to the previous year, but still less than expected when compared to the budget. The second half of the year is when the industry fell on hard times cutting into overall revenue and financial performance, ushering in government assistance to ride the wave of misfortune.
The industry is getting back into gear and has progressed in recent months. Tab New Zealand reported that its trading performance for October came in with a gross betting revenue of $37.7million. With the return of sports aiding its performance, such as the National Rugby League final between Melbourne Storm and the Penrith Panthers. Additionally, the return of Australia up against the All Blacks also fuelled the return of projected revenue with even more hope for the future as other sports return to their regular schedules.