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

Newbury chairman Dominic Burke has highlighted the challenges facing the racing industry despite the racecourse announcing increased revenues and profits in its preliminary results for 2023.

Overall revenue for the year of £18.96 million was up nine per cent on 2022, with racing revenues having increased by eight per cent, which the racecourse put down to an increase in media rights income, despite three meetings being abandoned during the year.

Consolidated group profit on ordinary activities before tax was £720,000 compared to £130,000 in 2022, but that included an exceptional profit of £700,000 connected to the development of the racecourse.

Newbury made a 13 per cent increase in total prize-money to £5.82m for 2023, with a 14 per cent increase in executive contribution to £2.82m. Prize-money at the course is set to hit £7m in 2024, with an executive contribution of £3.5m.

The chairman's statement in the accounts said that 2023 had been "a year of revenue growth set against the challenges of cost inflation and the company's commitment to prize-money investment."

Burke added: "Despite this overall revenue increase of nine per cent, our reported 2023 profit before tax (excluding exceptional profit) was marginally above break-even, demonstrating the challenges the industry faces from cost inflation, as well as the company's decision to make a significant investment into prize-money.

"This additional prize-money and executive contribution commitment will also extend into 2024 with record amounts announced. Any future increases in prize-money will be dependent on the profitability of the underlying business."

Dominic Burke: chairman of Newbury racecourse committed to improving its facilities

Burke said Newbury's commitment to improving racecourse facilities had been demonstrated by a joint £1.6m investment in the Hennessy Restaurant shared with catering partner Levy Restaurants.

He added: "This investment has been made despite a very challenging racing environment, both at Newbury and throughout the rest of the UK, but the board believes in the importance of providing high quality facilities for all of our racegoers."

Shaun Hinds is set to join Newbury as its new chief executive on June 3, succeeding Julian Thick.

Burke added: "On behalf of the board, I would like to thank Julian for his significant contribution to the business which he leaves in a strong financial position and with a world-class racing facility."

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