UK horseracing organiser hit by football impact
The UK's largest operator of horseracing fixtures blamed the distraction of the World Cup for a dip in form at its racecourse division today.
Arena Leisure, which operates tracks at Wolverhampton, Lingfield Park, Royal Windsor, Southwell, Folkestone and Worcester, said the impact on attendances meant half-year profits for the arm fell 7.4% to £3.8m (€5.6m).
A stronger performance at media joint venture At The Races meant profits for the group increased by 7.9% to £2.2m (€3.2m) in the six months to June 30.
Arena said attendances were returning to normal levels, following disruption caused by the World Cup during June and the early part of July. The month of June normally accounts for around 30% of gates in the first half.
Arena said a 4.6% fall in its total attendance to 216,000 for the first six months compared favourably with the rest of industry, which saw a 10% drop. Adjusted for the impact of the World Cup, operating profits rose by 5%.
The company was originally scheduled to stage 334 fixtures in 2006, but the delayed opening of a racecourse at Essex could take that figure to 354, which would represent an increase of 9.1% on 2005. The benefit from the additional fixtures will mitigate reduced attendances, Arena said.
Next year Arena is due to stage 335 meets, which would still amount to around one-quarter of all racing in the UK.
The company added that Doncaster Racecourse's £32m (€47m) redevelopment was on schedule to re-open in August 2007.
Planning permission has also been obtained for expansion at Lingfield Park, while a proposal will soon be submitted to incorporate a casino at Wolverhampton Racecourse.
Arena said At The Races - in which it has a 47.5% stake - performed "particularly well" with its share of losses reducing by 76% to £220,000 (€327,000).
Earlier this week, Arena confirmed it had been involved in talks regarding an industry-wide bid for state-owned bookmaker the Tote.
It said no terms had been agreed, although newspaper reports at the weekend suggested the bid consortium was offering less than the £400m (€594m) that the Government had been looking for.
