business summary | Horse Racing Free Tips

Edited Press Release

The turnover at Ascot Racecourse exceeded £100 million for the first time with a strong recovery from COVID-19 last season. The return to profit will allow for record prize money of £17 million set to be returned to the sport in 2023 and a voluntary increased loan repayment will help reduce debt ahead of schedule. The 2022 business summary highlighted several points of improvement:

A return to profit with a pre-tax profit of £3.4m after two difficult years of COVID-19 restrictions. This compares to a pre-COVID profit of £7.3m in 2019, highlighting significantly increased overheads and operating costs in the current economic climate.
Turnover rose by 161% to a record level of £101.4m with hospitality and admission revenues recovering strongly.
Attendance at Royal Ascot 2022 bounced back from COVID disruption to 273,465 with a total for the full year, excluding industry joint venture QIPCO British Champions Day, of 483,424.
Strong broadcast reach: World Pool turnover and international interest helped grow diverse revenue streams. Royal Ascot 2022 was broadcast into over 170 territories including NBC terrestrial coverage in America on the Saturday, reaching 2.5 million unique viewers, up 47% on 2021.
The loan agreement was renewed during the year and the term of the loan was extended by a minimum of three years.
£6m of the loan was repaid in 2022 (a £3m mandatory repayment and a voluntary partial early repayment of £3m) and the revolving credit facility of £5m, drawn down in March 2020, was repaid. Net debt at 31st December 2022 was £17.2m (2020 £25.4m).
The standby loan facility of £20m arranged through the Government CLBILS scheme remained undrawn during the year and matured at the end of April 2023. This was replaced by a revolving credit facility of £12.5m which remains undrawn.
Strong 2022 performance enabled record planned prize money in 2023 with £17m set to be on offer, an increase of £1.33m versus 2022. This excludes the £4.45m on offer at the industry joint venture fixture, QIPCO British Champions Day. Prize money at Royal Ascot 2023 was £9.52m, an increase of 10% over 2022.

Alastair Warwick, Chief Executive Officer at Ascot Racecourse, said:

“The figures for 2022 show that Ascot has recovered strongly from the impact of the pandemic. Last year's performance, headlined by record turnover, gave us the confidence to invest in the business this year, including reaching the £17m prize money mark for the first time.

“Having further reduced our debt, including through a voluntary additional repayment, we are in a good position to continue to improve both prize money and facilities.

“We are particularly encouraged to have seen strong attendance and hospitality metrics at Royal Ascot this year, the first under the reign of King Charles III. We had incredibly competitive, international fields and World Pool betting continues to be strong while viewing figures on ITV were excellent, including a peak of over a million every day and a ten year high for the final day.

“Their Majesties The King & Queen attended on all five days and it proved to be a very special occasion with Desert Hero carrying the Royal silks to victory, whilst Frankie Dettori signed off his Royal Ascot story with a ninth Gold Cup win.

“I would like to thank all our hard-working staff and our commercial and broadcast partners for their continued commitment to Ascot.”

The post Ascot Racecourse Announces 2022 Financial Results appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

The 2020 financial results were announced by Ascot Racecourse on Wednesday. Total turnover was down by 77% due to COVID-19 restrictions with only two racedays being held with spectators and another 18 run behind closed doors. There were also five lost racedays due to the pandemic and one abandonment due to inclement weather. Pandemic insurance and support from the UK Government through the Coronavirus Job Retention Scheme and business rates relief prevented a pre-tax loss of over £31 million. In addition, the staff were restructured to adjust to pandemic trading conditions. At the end of 2020, the gross debt for the racecourse stood at £59.4m compared to 2019's £57.4m. A standby loan facility of £20m until 2023 was arranged through the Government Coronavirus Large Business Interruption Loan (CLBILS) scheme, but was not drawn down.

Guy Henderson, Chief Executive Officer at Ascot Racecourse, said, “2020 was naturally a difficult year with trading conditions and results severely affected by the Covid-19 restrictions. The financial impact was mitigated by cushions such as the Coronavirus Job Retention Scheme, Business Rates Relief and pandemic insurance for racing without crowds, but Ascot's financial position and ambitions have suffered a setback.

“Ascot had to reduce fixed costs at the end of 2020. Having to lose dedicated and loyal employees, who had contributed to Ascot's success over recent years, was hard for all concerned. I wish to pay tribute to and thank all our staff for their dedication and commitment in such difficult and uncertain times.

“We also wish to thank all our partners, suppliers, sponsors and various customers for their support.

“Without pandemic insurance this year and with strict limits on crowds at Royal Ascot for the second year, we currently forecast a significant pre-tax loss in 2021. That said, the business is on track to end the year without having to increase debt in 2021. This will provide a solid platform from which to bounce back from the pandemic in 2022 and 2023.

“Prize money and capital investment have inevitably been impacted as a result of the pandemic. We plan to build back on both fronts to pre-Covid levels as prudently and as quickly as practicable from next year. Attracting and rewarding the best quality racing and providing top class facilities are important business priorities.

“Royal Ascot in the Platinum Jubilee year will be a huge celebration and our focus is on delivering a unique event for everyone to enjoy across the globe.”

The post Ascot Racecourse Releases 2020 Business Summary appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post