TAB New Zealand, (TAB NZ), paid the price for backing Argentina champions. A FIFA World Cup turnover boost couldn’t prevent a drop in December win.
For the month to 31 December 2022, the gaming operator generated turnover of NZ$255.9m ($165.8m/EUR152.1m/PS135.7m), which was 6.2% above budget and up 5.9% year-on-year. The overall field sizes for all three racing codes were at or near the same level as the year-to date average. Sport turnover was also significantly higher due to the FIFA World Cup which ended in the middle.
The overall result was affected by the lower betting margin in December, especially due to the strong support for Argentina at the World Cup final. The gross betting revenue (GBR), $38.1m, was 2.3% below budget ($0.9m) but exactly the same figure as December 2021. Gross betting margin (BGM), 14.9%, was slightly lower than budget and 1.3 percentage points less than last year.
The December average NZ thoroughbred start rate per race was 10.9, higher than the 10.6 year-to-date. Also, the Boxing Day Races in Pukekohe saw the highest meeting turnover of $5.2m. Harness average starters per racing was 10.1. This was the same as the year-to date average. Peak meeting turnover was $2.1m on December 4th for the Harness Grand Prix in Addington. Greyhound racing saw an average of 7.4 starters per race, matching the year-to date average. On 1 December at Addington, the peak turnover for domestic greyhound meetings was $417k.
With a turnover of $2.0 million, the FIFA World Cup Final between Argentina and France was December’s top sporting event. Basketball accounted for 44% of the in-play turnover, while football accounted for 49%.
TAB NZ reported a $14.0m profit for the month. This was $2.4m less than budget. Operating expenses for the month were $10.6m. This was $0.4m more than budget.
Year-to date Reported Profit was $61.7m which is $9.7m less than budget. However, year-to–date operating expenses were $53.7m which was $2.4m more than budget.
The December distributions and other payments to racing codes totaled $17.2m, which was $17.4m less than the budget. These payments included TAB NZ Betting Profit and offshore bookmaker commission fees. These fees are based upon actual turnover and Betting Duty/Levy removal.