Arena Leisure attendance up as levy income falls

The operator of Doncaster Racecourse said pre-tax profits nearly halved in the first six months of the year £0.5m – down from £0.9m a year earlier.

Total revenues fell by £1.9m to £28.2m after the reduction in the levy.

But Arena insisted it has performed well and is beating trends in the industry, with total attendances surging 11.7 per cent to 315,000. Average attendances increased 11.3 per cent to 1,667.

Excluding levy income, Arena’s revenues increased 15.3 per cent to £22.5m, reflecting its gains in attracting punters and diversifying.

“Despite the challenging back drop of reduced industry funding and the slow economic recovery, the consumer-driven operations of Arena’s business have performed exceptionally well; most notably, posting attendance growth of over 11 per cent in the period,” said chairman David Thorpe.

“Our trading performance since 30 June 2011 is in line with the company’s expectations. The media rights uplift from 2012 onwards is now on the horizon.”

The group’s profits were hit by a £1.3m net impact from reduced levy income, which it said masked a £0.6m improvement in operating performance.

The Government is consulting on the future of the levy, and Arena insisted its assets should stand it in good stead if a replacement is settled on.

It called for Government to either restructure the levy or come up with a long-term commercial alternative. Arena added moves to tax off-shore bookmakers were a step in the right direction.

“We are encouraged by its recent statements on licensing and taxation of off-shore gaming,” said Mr Thorpe.

It staged 189 fixtures during the six months, and next month holds the St Leger Festival at Doncaster. It said bookings for St Leger are ahead of last year.

The group’s hospitality attendances increased by 8.2 per cent during the period to 18,400, generating an extra £0.1m in profits. However, this was still way short of the record hospitality figures of 21,500 it achieved in the first half of 2010.

Last month the group launched a review of its options, including a possible sale. Industry broadcaster Satellite Information Services is reportedly considering a £200m bid for the company.

SIS will be competing with racehorse owner Trevor Hemmings, who holds a 41.5 per cent stake in Arena, and billionaire property developers Simon and David Reuben.

Arena’s new media rights deal with SIS, worth about £106m, starts next year and should result in a £10m annual uplift.

It ended the period with £34.8m of bank debt.

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