The diversification of race clubs will be highlighted when the Brisbane Racing Club declares an operating profit of $1.3 million for the past financial year despite losing more than $4 million on its racing operation.
The profit will be declared at the club’s annual general meeting at Eagle Farm racecourse on Wednesday week.
BRC chairman Neville Bell said the club recorded a profit of $1,297,295 compared to the previous financial year’s loss of $805,526.
“While the racing part our business lost $4 million for the year, all the club’s tracks and racing staff were retained,” Bell said.
“Thankfully revenue from our non-racing and property divisions delivered $20 million to the consolidated financial performance and pushed the final result into the black with a full-year profit of $1.3 million after allowing for $4.7 million in depreciation and interest.
“(It) reflects a $2.1 million turnaround in a 12-month period of restricted race days due to the (Eagle Farm) track outage, reducing race day revenue opportunities by some 37 per cent from the previous year.”
Bell said it had been achieved against a background of high fixed-operating costs which continued to rise against a backdrop of reduced race day attendance and strong competition for the discretional entertainment spend.
“Like major race clubs around Australia, the BRC has been planning our diversified business strategy for more than five years,” he said.
“This year, the core Club business reaped substantial financial benefit from these non-racing revenue streams that will ultimately future-proof BRC operations.”
He said non-racing revenue contributed $10.6 million revenue to the consolidated result and property contributed another $10.3 million.
“The Club’s total revenue grew to $50.9 million up from $45.2 million last year. In fact, total revenue has risen from $36 million in 2015. This is an increase of $14.9 million – or 41 per cent – in three years,” Bell said.
“The level of club debt as at June 30 was $67.9 million – an increase of $16.5 million from the previous year. However, the BRC is well positioned to pay down this debt.”
Bell said the Racecourse Village shopping centre which opened at Eagle Farm in late July, along with other blue chip property was valued at $48 million and delivered approximately $2.54 million annually in rental income.