Racing: NZ Racing Board expects challenging half-year ahead

The New Zealand Racing Board says it has achieved a solid half-year result with revenue of $830 million to the end of January, slightly ahead of budget.

The board, which runs the TAB, said the result would see it through the second half of the year, which it expected to be more challenging.

The result was achieved on the back of last year's economic recession and ongoing constraints on household spending, chairman Michael Stiassny said.

"All key indicators - turnover, net betting revenue and profit - exceeded expectations in the half," he said.

"Net profit for the period was $70.94 million, 4.9 per cent ahead of budget, which will see us through the slightly softer second half we are expecting."

Betting turnover at $830 million was 4.1 per cent ahead of budget, while net betting revenue at $123 million was up 2.9 per cent.

Compared with the same time last year, turnover was 3.9 per cent higher, net betting revenue 1.3 per cent higher and net profit 5.8 per cent higher.

Some of this profit had already been shared with the struggling industry codes, which have battled through a halt to pokie machine revenue for stakes, through an unscheduled distribution of $6 million in February.

Operating expenses, featuring $18 million for employees, were $70.7 million, ahead of the budgeted $69.1 million, but below the $73.1 million spent in the same period a year earlier.

The half-year result came off the back of a number of positive initiatives.

There was also some realisation of NZRB's $10 million cost saving programme in the half. Its benefits would continue to be realised to the end of the financial year and in the 2010-11 year, he said.

The export of televised domestic racing should deliver greater earnings in the second half - first half earnings were $6.3 million - while its betting website would also pay dividends.

It is to have a major campaign around the Soccer World Cup next month and is to modernise its retail network next year.

- NZPA