Governed by a code of practice under an Act of Parliament in 2014.
Tab NZ operates on behalf of the New Zealand Productivity Commission.
And provides a legal, safe and fun environment for gambling.
Key areas of focus are:
- Responsible gambling, including access to support services for problem gamblers.
- Player protection measures.
- Product integrity and quality control.
- Conducting its business with integrity to maintain the confidence of its customers and stakeholders.
Tab NZ has reported revenue below budget for the past three years.
This has led to a loss in the company’s stock value, and it’s currently struggling to pay its debts.
What went wrong with Tab NZ?
The main problem with Tab NZ is that it failed to identify and capitalize on new trends in the market.
In particular, it didn’t invest enough money into marketing its products and services, which led to a decline in revenue.
Additionally, the company made significant technological investments that failed to deliver promised benefits.
However, several factors may have contributed to its decline. First and foremost, the company failed to capitalize on new trends in the market (such as mobile technology), which led to a decrease in revenue.
Additionally, it made significant investments into technology that didn’t deliver promised benefits (such as a new website design).
This put tremendous pressure on Tab NZ’s finances and ultimately led to its downfall.
Tab NZ revenue for the last year/s
As of 31 March 2019, the NZ TAB generated a net profit after taxes of $181.4 million for 30 September 2018.
This was a 3% increase from the previous corresponding period in 2017/2018 ($173.1 million).
Q3 2018/2019 was up 3% on the previous corresponding period in 2017/2018 from $157.2 million to $161.5 million, which the NZ TAB said was primarily driven by a 4% increase in sports betting turnover.
However, the NZ TAB’s total revenue for 2019/2020 (1 July 2018 to 30 June 2020) was anticipated to be up 1.3% in the fiscal year 2017/2018.
Gaming Trust operating profit for 31 March 2019 decreased by 11% from a year earlier due to a 2% increase in prize pool contributions offset by a 1.3% decrease in revenue.
Tab NZ revenue below budget
This statutory body spent $411 million in revenue on advertising, promotions, and gambling taxes.
While this is just under its budgeted amount, the company still lost money from its business operations.
The loss was primarily caused by increased competition from other sports betting companies on growing their market share exponentially with new streaming technologies and mobile apps.
Chief executive Adam Milne told the media that he believes the company can be profitable by 2022.
Conclusion
Tab has also not been able to keep up with the ever-changing landscape.
Tab’s revenue dropped by 20% in FY18, while its operating margin dipped drastically from 22% a year ago to 9.6% at the end of March.
For now, the company seems done with its aggressive price war.
That could be good news for customers and sellers who have thrived on low prices but are now facing increased competition.
Source:
- https://www.tabnz.org/tab-new-zealand-performance-update-july-2021