Auckland Racing Club Announces 2007 Result

Media Release
29 October 2007

Auckland Racing Club Announces 2007 Result

Auckland Racing Club announced on Saturday that it had returned a surplus of $658,960 from operations for the year ended 30 June 2007, an increase of more than one million dollars from last year.

Total revenue increased by $1,979,594 to $14.342 million, while operating expenditure increased by $925,754 to $13.684 million. Depreciation increased by $122,000 to $1.07million and net deficit for the year after depreciation was $439,997 compared to $1.316 million in 2006.

Auckland Racing Club Chairman Bill Gianotti attributed the result to improved operational performance, tax regime changes and highly successful racing carnivals.

“It has been an extremely successful year for Auckland Racing Club. Significant progress has been made on improving revenue streams from key areas of the business such as the Ellerslie Event Centre, and the Board has been focused on increasing the returns to our stakeholders.“

Mr Gianotti said highlights over the last year included:

• On course income up $281,500 to $977,000 (on turnover of $9.142
million)

• Off course income up $796,715 to $5.891 million (on turnover of $50.448 million which includes $5.489m of fixed odds turnover)

• Sponsorship/grants incomes up $366,000

• Gates income up $42,000

• Stakes and trophies increase of $1.081 million

• Net catering result grew $482,000 to $1,077,000

The recent official notice from the Environment Court advising the business that it could proceed with plans to redevelop the Club’s main public carpark area would allow the Board to continue to make progress with their plans to unlock income from surplus land while still retaining ownership of the land, Mr Gianotti said.

“Overall the 2006/2007 racing season has proven to be a watershed for the entire industry. After operating under the new tax structure for 12 months it’s clear that the change has provided the spark for growth that the industry needed to arrest the decline from the late 1980s. Further significant increases in prizemoney levels have been set for the new 2007/2008 racing season where the Club will achieve a unique national milestone by becoming the first to pay in excess of $10million in total prizemoney in a season.”

Auckland Racing Club Chief Executive Chris Weaver said the Club was pleased with the result, which was achieved despite two less race days during the season and 24 less races.

“The Auckland Racing Club is in the strongest position it has been in for many years. Our two flagship events, the SKYCITY Auckland Cup and the Mercedes Derby were raised by $100,000 each to $700,000 per race. We’re looking forward to building on this success by continuing our drive to attract a new audience to racing and building on the developments we have made in growing the racing calendar.”

Ends

© Scoop Media