Despite the impact of the World Cup causing racecourse attendance to fall by 4.6%, Arena Leisure plc has reported interim results for the six months to 30 June 2006 that show a 5.7% increase in turnover and a 9.2% rise in operating profit to £2.4 million (US$4.5 million). Arena is the largest operator of UK horseracing fixtures, with 333 race meetings scheduled for 2006 at the 7 courses it now controls.

A joint venture partnership with BSkyB called At The Races (ATR), which operates the UK’s only dedicated freely available racing channel, takes racing to the widest possible audience both in the UK and overseas. At present operating at a loss, ATR is now on course to achieve a break-even position during the second half. The company is also part of the racing consortium that has made a bid for the Tote, although it has made clear that it will only participate in the acquisition if the Board believes Arena can add value and generate value for its shareholders.

Arena hosts the world’s oldest classic horserace at Doncaster – the St Leger. £32 million (US$60.7 million) is being spent on a project to build a new grandstand and conference/exhibition facilities, scheduled for completion in time for next year’s St Leger Festival in mid-September. At Lingfield planning permission has been given for a hotel and leisure development. However, it is at the racecourse in Wolverhampton where Arena has its most ambitious plans: to create the first racino in Britain. Wolverhampton City Council has been shortlisted by the Casino Advisory Panel (CAP) for one of the eight licences to be awarded for large casinos.

The cost of the racino project is expected to be in the region of £20 million (US$37.9 million) but will first have to obtain local council planning approval. An earlier planning application under the previous Gaming Act was refused. Arena anticipates submitting its proposal to the council within the next two months and the plans include a 170-room hotel, leisure club with swimming pool and facilities for conferences, exhibitions and banqueting.

Raymond Mould, Arena's Chairman, commented: “I am very pleased to report on another successful six-month period for Arena, with solid performances from both our racecourse division and our media rights joint venture company, At The Races. Our racecourse developments continued to progress well. Planning permission was obtained for the expansion at Lingfield Park and the redevelopment of Doncaster Racecourse is proceeding well and is on schedule to re-open in August 2007.” (E-09.21.06)

© Copyright 2006 CasinoCompendium



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