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 $70.94m, 4.9 percent ahead of budget, which will see us through the slightly softer second half we are expecting."
Betting turnover at $830m was 4.1 percent ahead of budget, while net betting revenue at $123m was up 2.9 percent.
Compared with the same time last year, turnover was 3.9 percent higher, net betting revenue 1.3 percent higher and net profit 5.8 percent 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 $6m in February.
Operating expenses, featuring $18m for employees, were $70.7m, ahead of the budgeted $69.1m, but below the $73.1m spent in the same period a year earlier.
The half-year result came off the back of a number of positive initiatives including wagering product innovation and the launch of TAB TV, Stiassny said.
There was also some realisation of NZRB's $10m 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 board's export of its televised domestic racing should deliver greater earnings in the second half - first half earnings were $6.3m - while its more friendly betting website would also pay dividends.
It is to have a major campaign around the Football World Cup next month and is to modernise its retail network next year.
"The traditional TAB customer is ageing so to future-proof the business we need to evolve the TAB's offering to meet the needs of younger customers," Stiassny said.
"Someone in their 20s demands a completely different entertainment experience than someone in their 60s, and we are working hard to find solutions that cater for this group."
