TV deal helps Arena Leisure race ahead

The firm said At the Races (ATR), its media rights distribution business, has formed a joint venture with Racecourse Media Group.

Arena, which owns and operates seven racecourses in the UK comprising Doncaster, Royal Windsor, Lingfield Park, Southwell, Wolverhampton, Folkestone and Worcester, also said trading was in line with expectations.

ATR and Arena have entered into an equal participation joint venture with Racecourse Media for the international distribution of all UK and Irish racing. The broadcast service will be tasked with maximising the revenue opportunities for British and Irish racing in markets such as Italy, France, South Africa, Turkey and Australia as well as further developing opportunities in newer markets such as Singapore, Malaysia and Hong Kong.

Mark Elliott, chief executive of Arena, said: "In partnership, ATR and RMG will provide a platform to offer enhanced distribution of racing content to existing markets, as well as maximise cost efficiencies and, more effectively, expand distribution of UK and Irish racing internationally.

"This joint venture is further evidence of the underlying value inherent within racing and, in particular, within Arena's portfolio of racing media rights and another example of the Group's strategy of maximising financial returns from this valuable portfolio of assets."

ATR owns the international distribution rights to 30 UK racecourses and all 26 Irish racecourses. RMG owns the international distribution rights to the remaining 30 UK racecourses.

The joint venture will start trading on 1 March and is expected to achieve an immediate reduction in duplicated costs, Arena said. ATR said its cost reduction benefit in the year to 31 December 2010 is estimated at around 500,000 with longer term revenue growth expected.