Newbury facing 'continued headwinds' despite trading beating expectations in first half of 2024

Newbury racecourse said the economic environment remained challenging despite revealing that trading for the first half of the year had been ahead of expectations.

Turnover increased by 16 per cent to £9.28 million in the six months to June 30 compared with the equivalent period last year, according to the course's interim results, with raceday attendances up five per cent.

The course recorded an operating loss before interest and tax of £350,000 for the period, compared with £650,000 in 2023.

Newbury said the impact of inflation, increased cost of utilities, and additional prize-money investment had all contributed to an 11 per cent increase in costs.

Earlier this year Newbury announced its prize-money for 2024 would increase year-on-year by 13 per cent to £7m, while its executive contribution would rise by 14 per cent to £3.5m.

However, it warned that any future increases would be "dependent on the profitability of the underlying business".  

Dominic Burke: "We have also been able to improve our profit margin, despite rising costs"

A new five-year media-rights agreement with The Racing Partnership and Sky Sports Racing came into full effect from January 1.

Racecourse chairman Dominic Burke said: "Trading for the first half of 2024 was slightly ahead of management’s expectations, with raceday attendances broadly in line with 2023. Compared with the first six months of last year, our revenues have been stronger across all our income streams. 

"We have also been able to improve our profit margin, despite rising costs, and our commitment to making an additional contribution to prize-money.

"With the continued headwinds facing the racing industry the remainder of the year is expected to be challenging, but we remain very confident in the long-term prospects of the company, given the benefit from the full effect of our new-media rights agreement, along with once again being able to host 11 BHA Premier fixtures during 2025."

Newbury added it was in discussions to host further World Pool-supported races on Lockinge Stakes day, the fixture having staged five such contests this year. 

Read these next:

Racecourse bosses criticise the British government's plan for 'mad, idiotic' outdoor smoking ban 

Newbury highlights challenges facing racing industry despite rise in revenues in 2023

Newbury racecourse records £2.38 million loss due to impact of Covid pandemic 

Sign up to receive On The Nose, our essential daily newsletter, from the Racing Post. Your unmissable morning feed, direct to your email inbox every morning.