Profits up as punters put Arena on track

The group, which operates seven tracks and is the UK's biggest racecourse operator, was boosted by a new media rights deal and 55m of new banking facilities arranged with Lloyds Banking Group.

Revenue rose to 65.2m, up from 64.8m, pre-tax profits reached 4.1m, compared to 4m and earnings per share rose 3 per cent to 1.16p for the year to December 31.

Arena staged 370 fixtures, up from 363, which it said represented 26 per cent of all UK racing fixtures. Attendances rose 2 per cent to 639,000 and the impact of a shortfall in hospitality income was offset by increased revenue from media rights, efficiency measures and improved catering profits

The firm has signed a new media rights contract signed with SIS to provide content to UK and Irish betting shops over a five year period from 2012 worth an estimated total value of 106m, roughly doubling the previous deal. It said 12.5m was received on signing as part of a total of 32m of advanced payments

Mark Elliott, chief executive of Arena, said: "Arena has delivered another robust operational performance this year. We are proud of this achievement in what remains a challenging consumer market."

"The SIS agreement is transformational in crystallising the value of our racing product. This, together with the other development projects currently underway, has the added benefit of further strengthening and diversifying the Group's revenue streams in related areas as Arena evolves into a broader leisure business.

"We are encouraged that the broad appeal of racing continues to underpin Arena's resilient performance in spite of the continued unpredictable economic environment and we remain optimistic of another good year of development in 2010."

At The Races, in which Arena has a 45.85 per cent shareholding, delivered a 66 per cent increase in post-tax profit contribution of 0.5m.