Newbury expects 'revenue challenges' due to economic environment

Newbury has warned it expects to face "revenue challenges" in the second half of 2022 due to the economic environment after the racecourse issued its financial results for the first half of the year on Thursday.

Total turnover for the six months up to June 30 increased by 46 per cent to £7.81 million compared to the same period in 2021, as racing returned to normal following the disruption caused by the Covid-19 pandemic.

Overall operating profits for the six months were "slightly higher than our expectations" at £144,000, compared to a loss of £383,000 in 2021, while pre-tax-profits for the period were £217,000 compared to a loss of £336,000.

Attendances for the first half of the year totalled 57,300, which the course said was two per cent down on pre-pandemic levels.

However, there are concerns that the cost of living crisis and rising energy bills will exacerbate downward pressure on racecourse crowds.

Newbury chairman Dominic Burke said: "Trading for the first half of the year was satisfactory with raceday attendances returning to pre-pandemic levels, enabling the business to deliver results broadly in line with management's expectations.

"Due to the current economic environment, we expect some raceday revenue challenges in the second half of the year but, despite this, we continue to commit additional resources into prize-money to support our key stakeholders.

"Despite the current economic environment, we remain confident in the long-term prospects for the company."

Total media-related revenues of £2.75m were up 26 per cent on the same period in 2021, as a result of the higher number of racedays being staged as well as betting shops being closed for parts of early 2021.

The course also said it was "currently free of debt", having received a final £10.7m payment from its deal with David Wilson Homes.

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