The largest operator of UK horseracing fixtures, Arena Leisure Plc, yesterday published its interim results for six months ended 30 June 2007. Pretax profit (£2.3 million) and turnover (£25.3 million) were up from last year but recent flooding that caused racing to be cancelled has led to a 25% fall in shares since April. Attendances were up to 226,000 from 216,000 in 2006 despite only 177 fixtures being staged compared to 179 last year.

Yesterday Arena received planning permission from Wolverhampton City Council to expand the existing hotel and incorporate a casino when and if the small casino licence recommended by the Casino Advisory Panel is approved. This would turn Wolverhampton Racecourse into Britain’s first racino. There are further hurdles the project must jump before becoming a reality, such as getting government permission to build on green belt land. Chief executive of Arena Leisure, Mark Elliot, anticipates that the racino could be open by autumn 2009 subject to all necessary approvals.

Arena’s Chairman Raymond Mould, commenting on the company’s interim results said, “The first half of 2007 proved a very challenging operating environment, particularly in terms of the prolonged adverse weather conditions experienced throughout May and June, which resulted in profits significantly below our expectations. Nevertheless, our average attendance in the first half grew by 5.6% which compares favourably to the racing industry as a whole where average attendance grew by only 1.6%. The weather situation in July was, if anything, worse still.”

He added, “At this stage, the full year market estimate remains an achievable, if now somewhat more difficult, target. Important to this will be the successful staging of the Ladbrokes St Leger Festival in September following the re-opening of the redeveloped Doncaster Racecourse by HRH the Princess Royal on 12 September 2007. With developments now in the pipeline at a number of our racecourses that will help diversify our income streams, the Board continues to look forward to the future with confidence. “
(E-08.02.07)

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