Owner Arena has a better day at the races

The UK's biggest horseracing operator, which owns seven venues at Doncaster, Royal Windsor, Lingfield Park, Southwell, Wolverhampton, Folkestone and Worcester, said average attendance rose by three per cent to 1,498.

Underlying profits for the six months to June 30 rose 25 per cent to 2m and hospitality attendance increased by 13 per cent.

The group said the increase in hospitality was encouraging, especially as the important summer races and the Ladbrokes St Leger Festival at Doncaster Racecourse in September are still to come.

The group said that early bookings for the St Leger Festival are ahead of the same period last year, in line with the expected uplift.

Total attendance at the seven racecourses rose from 286,000 to 282,000 despite there being nine fewer fixtures.

Arena chairman David Thorpe said attendance would have been higher without the impact of the World Cup in June.

He reported encouraging signs from the group's first foray into other leisure areas.

"Our first after-racing concert of the year attracted a good crowd, with an 'X-Factor' line up performing at Doncaster Racecourse in May," he said.

"A second major concert featuring Scouting for Girls is scheduled at the racecourse in August."

Plans for a hotel and residential project at Doncaster have received planning consent.

The group is expected to stage 353 fixtures 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 10.6 million, with the majority of the shortfall hitting prize money.

Arena said the 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.

The group said the likely profit impact of the reduction in levy funding is 200,000 for this year and 800,000 for 2011.

"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," said Mr Thorpe.

"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 is beginning to pick up.

Mark Spincer, the new managing director at Doncaster Racecourse, said the course was keen to expand the St Leger Racing festival in September.

"We have worked to introduce a 'Festival' atmosphere to the town in a bid to stimulate the economic benefit derived from the St Leger and hoped to bring back the spirit of race week for the residents of Doncaster."

Dan Fell, head of policy at Doncaster Chamber, said: "The St Leger Festival is of great significance to the local economy.

"The Chamber strongly welcomes the intention to involve the communities and businesses of Doncaster in the festival and to broaden the scope of the event."

Bigger and better festival

Doncaster's famous St Leger Festival is to be expanded into a week-long event with attractions other than horseracing.

Around 60,000 people are expected to travel to South Yorkshire for the September meeting, which includes four days of racing including Ladies' Day and St Leger Day on the Saturday.

This year the Town Moor course will host racegoers between Wednesday September 8 and Saturday September 11, but Doncaster Council and racecourse operator Arena Leisure said special events are also planned for Monday September 3 and will run through the week until Sunday September 12.

The events include guided heritage walks around the town and musical performances.