Betting levy impacts revenues at Arena Leisure

REVENUES at racecourse owner and operator Arena Leisure decreased by £1.9m in the first half of 2011.

In its six-month results for the period ended June 30, 2011, the company, which runs Worcester and Wolverhampton racecourses, said revenues fell from £30.1m in 2010 to £28.2m.

This figure was impacted by the previously announced reduction in levy funding received by the group of £4.9m. Excluding levy income, revenues grew by £3m to £22.5m.

Profit before tax and interest decreased by £0.6m to £1.4m, primarily as a result of a £1.3m net impact from the reduced levy income, Arena said today.

Pre-tax profit was £400,000 lower at £500,000 and basic earnings per share were 16p, down from 28p.

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Net bank borrowings at the end of the period had reduced to £34.8m and these have been reduced further following the receipt last month of the final advanced payment of £7m from SIS, under the terms of a new media rights agreement.

In June, the company announced it was looking at ways to “improve shareholder” value which could include a sale of the company.

It said today that its position had not changed and this process was still ongoing.

Attendances for the period were up by 11.7% to 315,000 and average attendance was up by 11.3% at 1,667.