The New Zealand Racing Board says its flat profit was due to the cost of setting up broadcasting services and a mobile app which cost more than expected.
The statutory body blew its budget by $3 million in spending on advertising and online developments.
The betting operator's profit, which rose 0.2 percent to $137 million for the year ended July, was also hit by the strong New Zealand dollar.
The result came in a year when the Football World Cup boosted the organisation's turnover to more than $2 billion.
Acting chief executive of the Racing Board, Stewart McRobie, said its Australian income also pulled its profit down.