Arena lifts profits amid levy uncertainty

The company, which operates seven courses around the UK including Doncaster, said its average attendance was up by three per cent to 1,498 as underlying profits for the six months to June 30 lifted 25 per cent to 2m. Hospitality attendance increased by 13 per cent.

The group is expected to stage 353 fixtures across this year - accounting for around 25 per cent of all UK racing - but the size of next year's schedule is still uncertain due to the impact of a sharp fall in the horseracing betting levy.

The sport is funded by a levy on bookmakers' profits but the figure is set to drop to around 70m from the 94.5m expected in this year.

The amount received by Arena racecourses from the levy during the half year period reduced by more than 1m to 10.6m, with the majority of the shortfall impacting on prize money.

Arena said 88 fixtures leased from the British Horseracing Authority on a one to three year basis were most at risk from the funding shortfall, although most make a positive contribution to the levy and should survive.

It said the likely profit impact of the reduction in levy funding remains as previously estimated at 200,000 for this year and 800,000 for 2011.

Arena's chairman David Thorpe said: "The forecast reduction in Levy spending in 2011 is a major concern for the racing industry and we are playing our part in achieving a resolution.

"However, with our portfolio of fixtures the board believes that we are well positioned to manage the challenges that this represents."

He described Arena's trading performance in the half year as commendable and said there were encouraging initial signs that corporate hospitality business was beginning to pick up.