Gross betting revenue was $32.6m, 4.8% below the budget of $34.2m. This meant that the gross betting margin – the percentage of the total handle that was returned in revenue – was 16%, 0.2% above budget.
Tab reported a profit of $8.7m for the month, representing a $5.2m budget shortfall. Contributing to this was the higher-than-expected operating expenses, which came in at $11.9m for the month – $1.7m above budget.
This compares to June’s $11m profit, which was $1.7m below budget. Tab recorded $10.8m in profit in May.
For the full year from 1 August 2021 to 31 July 2022 profit was $154.8m, a reduction of $23.5m compared to the previous year, and $8.5m below budget. This compared to full year operating expenses of $119m, which were $5.4m above the previous year, but $1.7m below budget.
Tab stated that the combination of factors that contributed to the lower betting revenues include “softening economic conditions” that have impacted discretionary consumer spending, ongoing mask-mandates in retail sites, race meets being abandoned due to weather, and a decline in the starter numbers in two of the three racing codes.
Operating expenses increased in July due to restructuring costs, as well as customer acquisition and retention investments.
Original article: https://igamingbusiness.com/finance/tab-nz/
